SWOT explained for use in Practice of International Business course based on EIMSO tool. Source: http://www.mindtools.com/pages/article/newTMC_05.htm taken from web on [12/21/2009 11:45:04 AM]

1. SWOT Analysis - Discover New Opportunities. Manage and Eliminate Threats - Management Training from Mind Tools
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THOUGHT OF THE Policy
DAY: Set the stage for powerful is that, with a little thought, it can help you uncover opportunities
change that you are well placed to exploit. And by understanding the weaknesses of What People Say
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Being Assertive catch you unawares.
The next steps for my More than this, by looking at yourself and your competitors using the SWOT "I love this newsletter!
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yourself from your competitors, so that you can compete successfully in your relate to all topics and
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Christina Wall,
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Strengths:
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2. SWOT Analysis - Discover New Opportunities. Manage and Eliminate Threats - Management Training from Mind Tools
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New Managers necessity. site and it saves me
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3. SWOT Analysis - Discover New Opportunities. Manage and Eliminate Threats - Management Training from Mind Tools
Technology
Could any of your weaknesses seriously threaten your business? Industry. Free
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Carrying out this analysis will often be illuminating – both in terms of www.ITBusinessEdge.co
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Swot Analízis
Strengths and weaknesses are often internal to your organization.
Swot Example
Opportunities and threats often relate to external factors. For this reason
Swot Analysis
the SWOT Analysis is sometimes called Internal-External Analysis and the
SWOT Matrix is sometimes called an IE Matrix Analysis Tool. Personal Swot
You can also apply SWOT Analysis to your competitors. As you do this,
you'll start to see how and where you should compete against them. Search Now:
Tip 1:
Make sure you visit our next article 'PEST Analysis' - this tool is useful for
understanding the 'big picture' of the environment you are operating in
and will help you identify the opportunities and threats within it.
Tip 2:
SWOT can be used in two ways – as a simple icebreaker helping people
get together and "kick off" strategy formulation, or in a more sophisticated
way as a serious strategy tool. If you're using it as a serious tool, make
sure you're rigorous in the way you apply it:
Only accept precise, verifiable statements ("Cost advantage of
US$10/ton in sourcing raw material x", rather than "Good value for
money").
Ruthlessly prune long lists of factors, and prioritize factors so that
you spend your time thinking about the most significant factors.
Make sure that options generated are carried through to later
stages in the strategy formation process.
Apply it at the right level – for example, at product or product line
level, rather than at the much vaguer whole company level.
Supplement it with other option-generation tools – none is likely to
be completely comprehensive.
Example
A start-up small consultancy business might draw up the following SWOT
matrix:
Strengths:
We can respond very quickly as we have no red tape, no need for
higher management approval.
We can give really good customer care, as the current small amount
of work means we have plenty of time to devote to customers.
Our lead consultant has strong reputation within the market.
We can change direction quickly if our approach isn't working.
We have little overhead, so can offer good value to customers.
Weaknesses:
Our company has no market presence or reputation.
We have a small staff with a shallow skills base in many areas.
http://www.mindtools.com/pages/article/newTMC_05.htm[12/21/2009 11:45:04 AM]

4. SWOT Analysis - Discover New Opportunities. Manage and Eliminate Threats - Management Training from Mind Tools
We are vulnerable to vital staff being sick, leaving.
Our cash flow will be unreliable in the early stages.
Opportunities:
Our business sector is expanding, with many future opportunities for
success.
Our local council wants to encourage local businesses with work
where possible.
Our competitors may be slow to adopt new technologies.
Threats:
Will developments in technology change this market beyond our ability
to adapt?
A small change in focus of a large competitor might wipe out any
market position we achieve.
The consultancy may therefore decide to specialize in rapid response, good
value services to local businesses. Marketing would be in selected local
publications, to get the greatest possible market presence for a set
advertising budget. The consultancy should keep up-to-date with changes in
technology where possible.
You can see this analysis in diagram format in figure 1 below.
Drawn using SmartDraw. Click for free download.
Key Points
SWOT Analysis is a simple but powerful framework for analyzing your
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