Introduction

SWOT Analysis is a tool used for strategic planning and strategic management in
organizations. It can be used effectively to build organizational strategy and competitive
strategy. In accordance with the System Approach, organizations are wholes that are in
interaction with their environments and consist of various sub-systems. In this sense, an
organization exists in two environments, one being in itself and the other being outside. It is a
necessity to analyse these environments for strategic management practices. This process of
examining the organization and its environment is termed SWOT Analysis.

“SWOT Analysis is a simple but powerful tool for sizing up an organization’s resource
capabilities and deficiencies, its market opportunities, and the external threats to its future”
(Thompson et al., 2007: 97). The acronym* SWOT stands for ‘strengths’, ‘weakness’,
‘opportunities’ and ‘threats. The SWOT Analysis, also referred to as ‘SWOT Matrix’, can
also be formulated as ‘TOWS Analysis’ or ‘TOWS Matrix’.

The components of swot analysis

SWOT Analysis is a process that involves four areas into two dimensions. It has four
components: ‘Strengths’, ‘weaknesses’, ‘opportunities’, ‘threats. Strengths and weaknesses
are internal factors and attributes of the organization, opportunities and threats are external
factors and attributes of the environment. SWOT Analysis is typically drawn out in a four-
quadrant box that allows for a summary that is organized according to the four section titles.
The SWOT Analysis is shown in a table with its four elements in a 2x2 matrix.

In SWOT Analysis, strong and weak aspects of an organization are identified by examining
the elements in its environment while environmental opportunities and threats are determined
by examining the elements outside its environment. In this sense SWOT Analysis is a
strategic planning tool used to evaluate the strengths, weaknesses, opportunities and threats of
an organization. It provides information that is helpful in matching the organization’s
resources and capabilities to the competitive environment in which it operates. Strengths and
opportunities are helpful to achieve the organizational objectives. They are favourable for
organizations. Weaknesses and threats are harmful to achieving the organizational objectives.
They are unfavourable for organizations. Therefore, underlying any successful selection of
strategies is an analysis of the organization’s internal strengths and weaknesses that are posed
by internal environment and the opportunities and threats that are posed by the external
environment. In other words, manager’s role is to try to ‘fit’ the analysis of externalities and
internalities, to balance the organization’s strengths and weaknesses in the light of
environmental opportunities and threats.

Organizational Strengths:

Strength is the characteristic that adds value to something and makes it more special than
others. Strength means that something is more advantageous when compared to something
else. In this sense, strength refers to a positive, favourable and creative characteristic.
Strength at organizational level involves properties and abilities by which an organization
gains an advantage over other organizations and competitor organizations that are revealed as
a result of the analysis of its internal environment. In other words, organizational strength
defines the characteristics and situations in which an organization is more effective and
efficient compared to their competitors. An organization can be described as strong, equal or
weak compared to their competitors based on five criterias: Relative market situation, relative
financial structure, relative production and technical capacity, relative research and
development potential, relative human capacity and management effectiveness (Dinçer, 2007:
145). “A strength is something an organization is good at doing or a characteristic the
organization has that gives it an important capability” (Thompson and Strickland, 1989: 109).

Organizational Weaknesses:

Weakness refers to not having the form and competency necessary for something. Weakness
means that something is more disadvantageous when compared to something else. In this
regard, weakness is a characteristic that is negative and unfavourable. Weakness at
organizational level refers to the situations in which the current existence and ability
capacities of an organization are weaker compared to other organizations and competitor
organizations. In other words, organization weakness means the aspects or activities in which
an organization is less effective and efficient compared to its competitors. These aspects
negatively affect the organizational performance and weakens the organization among its
competitors. Consequently, the organization is not able to respond to a possible problem or
opportunity, and cannot adapt to changes. “A weakness is something an organization lacks or
does poorly -in comparison to others- or a condition that puts it at a disadvantage”
(Thompson and Strickland, 1989: 109)

Opportunities:
 Opportunity means a situation or condition suitable for an activity. Opportunity is an
advantage and the driving force for an activity to take place. For this reason, it has a positive
and favourable characteristic. For organizational managements, an opportunity is the
convenient time or situation that the environment presents to the organization to achieve its
goals. Opportunities are those that would yield positive results for the organization
determined as a result of the analysis of its environment. Competition and the intense work
present organizations big opportunities. In fact “opportunities are conditions in the external
environment that allow an organization to take advantage of organizational strengths,
overcome organizational weaknesses or neutralize environmental threats” (Harrison and St.
John, 2004: 164).

Threats:

Threat is a situation or condition that jeopardizes the actualization of an activity. It refers to a

disadvantageous situation. For this reason, it has a negative characteristic that should be
avoided. For organizational managements, a threat is the element that makes it difficult or
impossible to reach the organizational goals. Threats are the situations that come out as a
result of the changes in the distant or the immediate environment that would prevent the
organization from maintaining its existence or lose its superiority in competition, and that are
not favourable for the organization (Ülgen and Mirze, 2010: 161). They can constitute an
impediment to the success of the organization, and cause unrecoverable damages. All
environmental factors that can impede organizational efficiency and effectiveness are threats.
The new world order formed as a result of globalization involves both opportunities and
threats. This system enhancing opportunities as well as threats directs organizational
managements to be careful of and act more strategically on the developments in and outside
their environments.

SWOT analysis is a useful tool for assessing the strengths, weaknesses, opportunities, and
threats of a company. Here's a SWOT analysis table for Humuza Juice Company:

Strengths:

Established brand: Humuza Juice Company has been in operation since 1980 and has built a
strong brand presence in the market.

Wide distribution network: The company has branches across all districts in the Ruwenzori
region, giving it a wide reach and access to customers.
Testimonials and positive reputation: Many customers, including both married and unmarried
individuals, have given positive feedback on the effectiveness of Humuza products.

Monopoly advantage: For more than two decades, Humuza Juice Company enjoyed a
monopoly in the market, giving it a competitive edge.

Weaknesses:

Dependence on a specialized nutritionist: The company heavily relies on Kapere, the retiring
Human Resource officer, who is the only specialized nutritionist. This creates a potential gap
in expertise and knowledge.

Inadequate skilled workforce: Some of the staff, including relatives of Aunt Dauda, lack
sufficient skills in the field of food and nutrition science, limiting their ability to contribute
effectively.

Decreasing product effectiveness: A recent survey revealed that Humuza products are no
longer as effective as competitors' offerings, which may lead to a decline in customer
demand.

Opportunities:

Recruitment of skilled staff: The company has the opportunity to recruit more staff,
particularly in key sections such as nutrition science, to address the retirement of Kapere and
improve the expertise within the organization.

Market diversification: Humuza Juice Company can explore new markets beyond the
Ruwenzori region to expand its customer base and increase sales.

Product innovation: The company can invest in research and development to improve the
effectiveness of its products and regain a competitive advantage.

Threats:

Intense competition: Humuza Juice Company is facing stiff competition from close
competitors, such as Rweza Wine, Kituzi Family, Mukama Nayamba Juice, and Kitoko
Companies, who offer more effective products.

Regulatory pressures: The government's demand for companies to regularize their products
and operations poses a threat to Humuza Juice Company if it fails to comply.
Employee resignations: The recent resignation of twenty staff members to join competitors
indicates a potential talent drain and loss of institutional knowledge.

Here's the SWOT analysis of Humuza Juice Company in a table format:

Strengths Weaknesses
1. Established brand 1. Dependence on a specialized nutritionist
2. Wide distribution network 2. Inadequate skilled workforce
3. Testimonials and positive reputation 3. Decreasing product effectiveness
4. Monopoly advantage
Opportunities Threats
1. Recruitment of skilled staff 1. Intense competition
2. Market diversification 2. Regulatory pressures
3. Product innovation 3. Employee resignations

Humuza Juice Company, founded in 1980 by Aunt Dauda, aimed to restore hope to
individuals experiencing a decline in sexual efficiency, which often led to domestic violence
and relationship issues. Over the years, the company experienced rapid growth, establishing
branches across all districts of the Ruwenzori region. Humuza products gained a reputation
for their effectiveness, with testimonials from both married and unmarried individuals
praising their impact on male and female sexual performance.

However, the company now faces several challenges. Kapere, the specialized nutritionist and
Human Resource officer, is set to retire at the end of December 2021, leaving a void in
expertise that has yet to be filled. Additionally, twenty staff members have resigned to join
competing companies, citing low pay and work overload. A recent survey has also revealed
that Humuza products are no longer as effective as those offered by competitors such as
Mukama Nayamba, Rweza Wine, Kituzi Family, and Kitoko Companies. The company's
long-standing monopoly in the market has been disrupted, and it now faces intense
competition.

To adapt to these challenges, Humuza Juice Company may need to recruit more staff,
particularly in key sections such as nutrition science, to compensate for the retirement of
Kapere. The company could also explore new markets beyond the Ruwenzori region for
diversification and invest in product innovation to enhance the effectiveness of its offerings.
However, the company must also address regulatory pressures from the government, which
requires companies to regularize their products and operations.

Aunt Dauda, the founder, appears to have lost hope in the business due to declining profits
and increased competition. The company's workforce comprises 30% of the total employees,
with 20% being relatives of Aunt Dauda. However, some of these relatives lack the necessary
skills in food and nutrition science, and their roles are limited to casual duties, while
specialized tasks are performed by Kapere.

In summary, Humuza Juice Company faces a range of challenges, including the retirement of
a specialized nutritionist, resignations of staff members, increasing competition, and
regulatory demands. To address these challenges, the company needs to recruit skilled staff,
diversify its markets, innovate its products, and meet regulatory requirements. These actions
are crucial for the company to overcome the current state of confusion and regain its position
in the market.

To ensure Humuza Juice Company's continuity in the competitive market, the following
strategic management choices can be considered, focusing on the structure, people,
technology, processes, and organizational culture:

Structure:

Implement a flatter organizational structure to enhance communication, decision-making, and

agility.

Establish cross-functional teams to encourage collaboration and innovation.

Define clear roles and responsibilities to improve accountability and efficiency.

People:

Recruit and retain skilled staff, particularly in key areas such as nutrition science and product
development.

Provide training and development programs to enhance employees' skills and knowledge.

Foster a positive and inclusive work environment to attract and retain top talent.

Encourage employee engagement and empowerment to drive innovation and productivity.

Technology:

Embrace technological advancements to streamline operations, enhance productivity, and

improve customer experience.

Invest in research and development to develop new products and improve the effectiveness of
existing ones.

Leverage data analytics to gain insights into customer preferences and market trends.

Processes:

Review and optimize internal processes to increase efficiency and reduce costs.

Implement quality control measures to ensure consistent product quality.

Enhance supply chain management to improve inventory management and timely delivery.

Organizational Culture:

Promote a customer-centric culture focused on delivering value and meeting customer needs.

Foster a culture of innovation and continuous improvement to adapt to changing market

dynamics.

Encourage open communication, collaboration, and teamwork across all levels of the
organization.

Emphasize ethical values and social responsibility in business practices.

Possible bottlenecks that may be encountered during the transformation process

include:

Resistance to change: Employees and stakeholders may resist changes to existing structures,
processes, or technologies. Overcoming resistance requires effective communication,
involvement, and training to gain buy-in and support.

Resource constraints: Implementing strategic changes may require significant financial

resources, technology investments, and skilled personnel. Managing limited resources
effectively and securing necessary funding is crucial.
Skill gaps: Hiring and developing skilled employees in specialized areas, such as nutrition
science and technology, may pose challenges. Identifying skill gaps and providing training
programs can help bridge these gaps.

Integration challenges: When implementing new technologies or processes, integration with

existing systems and workflows may present difficulties. Careful planning, testing, and
coordination are necessary to ensure a smooth transition.

Cultural barriers: Changing the organizational culture can be challenging. Overcoming deeply
ingrained beliefs, behaviors, and resistance to new approaches requires strong leadership,
effective communication, and consistent reinforcement of desired cultural values.

Addressing these bottlenecks requires a comprehensive change management strategy,

including clear communication, stakeholder engagement, resource allocation, and ongoing
monitoring and evaluation of progress. Flexibility and adaptability are also crucial to navigate
unforeseen challenges during the transformation process.

CONCLUSION

SWOT Analysis which has been used over the last fifty years in the field of strategic
management is a valuable technique for planning and decision making. In the strategic
management process a number of analysis techniques are used to achieve long-term goals of
an organization. Over the years SWOT has been a widely used technique in the analysis of
internal and external environments to support strategic decision situations. The technique has
been employed myriad of areas demanding strategic analysis for an industry, an organization,
a product, a person, a project, a city and so on. SWOT involves to determine an objective
and to identify the internal and external factors which are favourable and unfavourable to
achieve that objective. The strategic management process begins with the evaluation of the
organization’s internal analysis. The internal analysis is used to identify the internal sources
and capabilities for competitive advantage. The external analysis is used to identify market
opportunities and threats by analyzing general environment, competitive industry
environment and rivals. While the internal analysis shows the resources that need to be
improved and sustained, the external analysis enables an organization to align its strategies in
accordance with business environment.
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Yayım

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Ülgen, H. & Mirze, S. K. (2010). İşletmelerde Stratejik Yönetim, (5. Baskı), İstanbul: Beta
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