“SWOT ANALYSIS”

GENERAL ENVIRONMENT ANALYSIS:

FORCES DEFINITION SAMPLE CONDITIONS

SOCIO-CULTURAL-  Attitudes, opinions, and
DEMOGRAPHIC lifestyle of persons
 Values, mores, customs and
traditions
 Society composition
TECHNOLOGICAL  Problem-solving interventions; 
Creative technological
adaptation
 age distribution of population  lifestyles
 attitudes toward business  number of births
 attitudes toward careers  number of churches and church members
 attitudes toward customer service  number of deaths
 attitudes toward foreign people  number of divorces
 attitudes toward government & authorities  number of high school and college graduates
 attitudes toward investing by geographic area
 attitudes toward quality  number of marriages
 attitudes toward retirement  number of special-interest groups
 attitudes toward saving  number of women and minority workers
 attitudes toward work  per capita income
 average disposable income  population changes by city, county, state,
 average level of education region, and country
 birth rates  population changes by race, age, sex, and
 buying and consumption habits of people level of affluence
 childbearing rates  racial equality
 client activism  rate of family formation
 customs and traditions,  regional changes in tastes and preferences
 entry of large number of women into labor  regional shifts in population
market  sex roles
 ethical concerns  shift in the age distribution of the population
 growth rate of population  social programs
 immigration and emigration rates  social responsibility
 interest of consumers and employees in the  tastes and preferences,
quality of life issues.  trust in government
 language beliefs and values  use of birth control
 level of education  value placed on leisure time
 life expectancies
automation and robotics  government spending on r & d
 focus of r & d efforts  productivity improvements
 Internet & world wide web  technology investments
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  To avoid obsolescence and
promote innovation
ECONOMIC  Exchange of materials, money,
energy and information
 Nature and direction of the
economy in which a firm
operates
ENVIRONMENT  Natural resources
(ECOLOGY)  Reciprocal relationship
between business and ecology
POLITICO-LEGAL  Laws and regulations; Legal
and regulatory parameters
 Direction and stability factor is
a major consideration for
managers on formulating
company strategy
 new technologies
 availability of credit
 consumption patterns
 credit availability
 demand shifts for goods/services
 dollar value in world markets
 energy availability and costs
 export of labor and capital
 fiscal policy
 foreign countries’ economic conditions
 gnp trends
 government budget deficits
 gross domestic product trend
 import/export factors
 income difference
 air pollution
 land pollution
 availability of raw materials
 calamities
 climate change
 endangered species
 energy conservation
 inner-city environments
 attitude toward foreign firms
 changes in patent laws
 changes in tax laws
 country-country relationships
 environmental protection laws
 equal employment legislation
 government fiscal and monetary policy
 government protests
 government regulations or deregulations
 government stability
 government subsidies
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 inflation rates
 interest rates
 level of disposable income
 monetary policy
 money market rates
 people’s propensity to spend
 price fluctuations
 stock market trends
 trends in the growth of the gross national
product
 unemployment rate
 value of the dollar in world markets
 wage/price controls
 worker productivity levels
 limitation of natural resources
 ozone depletion
 pollution
 pollution control
 recycling
 traffic congestion
 waste management
 water pollution
 lobbying activities
 local, state, and national elections
 location and severity of terrorist activities
 number of patents
 number, severity, and location of
government protests
 political action committees
 political conditions
 size of government budgets
 special incentives
 special local, state, and federal laws
 import–export regulations  terrorist activities
 laws on hiring, promotion and pay  voter participation rates
 level of defense expenditures  world oil, currency and labor markets