Mukund Singh Chhetri

BBA 5th
Section - 'A'
R. No. - '15'
Presentation on: SWOT analysis
  BRIEF CONTENTS

Title Page no.

1. Concept of SWOT analysis 1-3

2. Components: 4

I. strength 4

II. Weakness 5
III. Opportunity 6

IV. Threat 7
Concept of SWOT analysis:

The SWOT analysis is an extremely useful strategic planning tool/ technique for
understanding and decision-making for all sorts of situations in an organization. SWOT
is the acronym of Strength, Weaknesses, Opportunities and Threats, that are the
strategic factors for an organization. In other words SWOT analysis is a high-level
strategic planning model which operates by peeling back layers of the organization is
designed for use in the preliminary stages of decision-making processes and can be
used as a tool for evaluation of the strategic position of an organization.  It is intended
to specify the objectives of the business organization and identify the internal and
external factors that are favorable or unfavorable to attain the objectives. SWOT
analysis summarizes the key issues from the business environment and the strategic
capability of an organization that are most likely to impact the strategic development.
Hence it is also called situation analysis.

1
SWOT analysis is one of the fundamental parts in strategy formulation. Under this,
the information about internal and external environment is presented in structured
way. The environmental opportunities and threats are identified and evaluated
scientifically. The main purpose of the SWOT analysis is to identify the extent to
which the current strategy of an organization and its strengths and weaknesses are
relevant to deal with dynamic business environment. It can also be used to assess
whether there are unique resources or core competencies within the organization to
grab the opportunities because an opportunity by itself has no real value unless the
organization has the capacity to take advantages of that opportunity

2
Generally SWOT analysis helps to seek the answer of following questions:

 Will the current strengths be effective and sufficient much in the future as well?
 Should the existing resources gaps be filled?
 Are new types of competitive capacities to be developed?
 Which resources and capabilities need to be emphasized greater? Etc…

3
Components of SWOT analysis:
There are four components analyzed under SWOT analysis and they are also further
classified into two different types on the basis of their areas of analysis or study:

1. Strength:.
An organization is said to be strong under the conditions having:

 Strong strategy
 Sound financial condition
 Strong brand image
 Market leadership
 Sophisticated technology
 Skill empowerment
 Powerful distribution channel
Production efficiency
Realistic and higher promotion etc…

4
2. Weakness:
An organization becomes weak under condition like:

 Unclear goal.
 Lack of strong strategy
 Weak financial condition
 Lack of skilled manpower
 Inferior product
 Obsolete technology and
 Exaggerated and weak promotion etc…

5
3. Opportunity:
An organization has opportunities to grab under the various conditions like:

 Product development
 Market expansion
 Entry into new market/business
 Advanced technology
 Strong economy/ financial condition
 Social Welfare/ development etc…

6
4. Threat:
Here are some are some conditions that results threat to business organization:

 Entry of new firm.

 Insufficient resources
 Lower employee's commitment
 Change in need and preference of customers
 Unfavorable law and policies imposed by government
 Trade cycle etc…
 

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Thank you…