SWOT

ANALYSIS
A TOOL USED IN ENVIRONMENTAL SCANNING
By: Angel Frondozo, BS Accountancy-3
 What is SWOT?
SWOT (Strengths, Weaknesses,
Opportunities, and Threats) Analysis is
a framework used to evaluate a
company’s competitive position and to
develop strategic planning. It assesses
internal and external factors, as well as
current and future company potential.
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What is SWOT?
It is designed to facilitate a
realistic, fact-based, data-driven
look at the strengths and
weaknesses of an organization,
initiatives, or within its industry.
It should be used as guide and
not necessarily as a
prescription.
STRENGTHS
Describes what an organization excels at
and what separates it from competition:
A strong brand, loyal customer base,
strong balance sheet, unique technology,
and so on.
WEAKNESSES
Stops an organization from performing at
its optimum level. They are areas that
needs improvement:
A weak brand, higher-than-average
turnover, high levels of debt, lack of
capital, etc.

OPPORTUNITIES THREATS

Favorable External Factors that could

Factors that have the potential to ham an
give an organization a competitive
organization.
advantage.

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 STRENGTHS WEAKNESSES

1. What is our competitive advantage? 1. Where can we improve?

2. What resources do we have? 2. What products are underperforming?
3. What products are performing well? 3. Where are we lacking resources?

OPPORTUNITIES THREATS

1. What new regulations threaten operations? 1. What technology can we use to improve
2. What do our competitors do well? operations?
3. What consumer trends threaten business? 2. Can we expand our core operations?
3. What new market segments can we explore?

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Strengths of SWOT Analysis
 It is the source of information for strategy planning
 It builds an organization strengths
 It reverse organizational weaknesses
 It maximizes firm response to opportunity
 It identify the core competencies of the firm
 It helps in setting objectives or strategic plan
 It helps to know the past, present, and future.

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 Limitations of SWOT Analysis
 I does not prioritize issues
 It does not provide solutions or offer alternative
decisions
 It can generate too many ideas but does not
helping in choosing which one is best
 It can produce a lot of information, but not all of
it is useful.

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Strengths of SWOT Analysis
Yellow
Is the color of gold, butter
and ripe lemons. In the
spectrum of visible light,
yellow is found between
green and orange.
Blue
Is the colour of the clear
sky and the deep sea. It is
located between violet and
green on the optical
spectrum.
Red
Is the color of blood, and
because of this it has
historically been
associated with sacrifice,
danger and courage.
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END!