1. A Report on
STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT)
ANALYSIS
SUBMITTED BY:
TSERING NGUTUK GURUNG (PAS076MSIEM018)
SUBMITTED TO:
NIRMAL PRASAD BARAL
PASHCHIMANCHAL CAMPUS
INSTITUDE OF ENGINEERING (IOE) LAMACHOUR,POKHARA
18th
Jan.2021
2. ABSTRACT
Strategic management refers to a process that explores the future direction of the organization and
attempts to maximize the long-term allocation of resources through the development of appropriate
strategies intended to guide the organization’s operations. A Strengths, Weaknesses, Opportunities, and
Threats (SWOT) analysis and the subsequent development of a strategic plan emphasize the process of
strategic decision-making based on analysis of situational variables. The SWOT analysis is based on
internal self-studies and a number of surveys carried out to determine views of various constituencies.
Strategic objectives are developed into strategies and actions to address weaknesses and threats by
effectively leveraging the strengths and opportunities. Subsequently, strategies are developed that rely
on the information assembled regarding these situational variables.
A SWOT analysis is a way of understanding and evaluating all facets of our organisation so we’re in a
better position to make decisions about the future. But there are also external factors that will have an
impact on ours future; these things are beyond our control but still require consideration as we map out
our strategy. That’s why many organizations choose to complement a SWOT analysis with a PEST
analysis—together, they provide a complete picture of our business environment for effective strategic
planning.
3. INTRODUCTION
Definition: SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities and
Threats. A SWOT analysis is a high-level strategic planning model that helps organizations
identify where they’re doing well and where they can improve, both from an internal and
external perspective. Prior to step next move, it should consider all of these things before
proceeding. The plan’s strengths and weaknesses are factors within the firm’s control. The
firm can magnify its strengths and eliminate the weaknesses. Opportunities and threats, on
the other hand, are external factors within the community that could affect the project’s
success. The firm does not have much control over these external factors.
4. Essentially, a SWOT analysis is an examination of the internal and external factors that impact
the organization and its strategies. The internal factors are strengths and weaknesses; the
external factors are opportunities and threats. A SWOT analysis gives an organization a
clear picture of the “situation” in which it operates and helps it identify which strategies to
pursue.
Internal Factors
Strengths and weaknesses include the resources and capabilities within the organization now. Since the
company has the most control over internal factors, it can craft strategies and objectives to exploit
strengths and address weaknesses. Examples of internal factors include the following:
• Financial resources
• Technical resources and capabilities
• Human resources
• Product lines
All of these are controlled by the organization. Competitive positioning can also be a strength or a
weakness. While competitors’ strategies and tactics are external to the company, the company’s
position relative to the competitors is something that it can control.
External Factors
External factors include opportunities and threats that are outside of the organization. These are factors
that the company may be able influence—or at least anticipate—but not fully control. Examples of
external factors include the following:
• Technology innovations and changes
• Competition
• Economic trends
• Government policies and legislation
• Legal judgments
• Social trends
While a company can control how it positions itself relative to the competition, it can’t control
competitors’ actions or strategies.
An overview of the four factors (Strengths, Weaknesses, Opportunities and Threats) is given below-
Strengths - Strengths are the qualities that enable us to accomplish the organization’s mission. These
are the basis on which continued success can be made and continued/sustained. Strengths can be either
tangible or intangible. These are what you are well-versed in or what you have expertise in, the traits
and qualities your employees possess (individually and as a team) and the distinct features that give
your organization its consistency. Strengths are the beneficial aspects of the organization or the
capabilities of an organization, which includes human competencies, process capabilities, financial
resources, products and services, customer goodwill and brand loyalty. Examples of organizational
strengths are huge financial resources, broad product line, no debt, committed employees, etc.
5. Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission and
achieving our full potential. These weaknesses deteriorate influences on the organizational success and
growth. Weaknesses are the factors which do not meet the standards we feel they should meet.
Weaknesses in an organization may be depreciating machinery, insufficient research and development
facilities, narrow product range, poor decision-making, etc. Weaknesses are controllable. They must be
minimized and eliminated. For instance - to overcome obsolete machinery, new machinery can be
purchased. Other examples of organizational weaknesses are huge debts, high employee turnover,
complex decision making process, narrow product range, large wastage of raw materials, etc.
Opportunities - Opportunities are presented by the environment within which our organization
operates. These arise when an organization can take benefit of conditions in its environment to plan and
execute strategies that enable it to become more profitable. Organizations can gain competitive
advantage by making use of opportunities. Organization should be careful and recognize the
opportunities and grasp them whenever they arise. Selecting the targets that will best serve the clients
while getting desired results is a difficult task. Opportunities may arise from market, competition,
industry/government and technology. Increasing demand for telecommunications accompanied by
deregulation is a great opportunity for new firms to enter telecom sector and compete with existing
firms for revenue.
Threats - Threats arise when conditions in external environment jeopardize the reliability and
profitability of the organization’s business. They compound the vulnerability when they relate to the
weaknesses. Threats are uncontrollable. When a threat comes, the stability and survival can be at stake.
Examples of threats are - unrest among employees; ever changing technology; increasing competition
leading to excess capacity, price wars and reducing industry profits; etc.
Benefits of a SWOT Analysis
SWOT Analysis is instrumental in strategy formulation and selection. It is a strong tool, but it involves a
great subjective element. It is best when used as a guide, and not as a prescription. SWOT Analysis
helps in strategic planning in following manner-
a. It is a source of information for strategic planning.
b. Builds organization’s strengths.
c. Reverse its weaknesses.
d. Maximize its response to opportunities.
e. Overcome organization’s threats.
f. It helps in identifying core competencies of the firm.
g. It helps in setting of objectives for strategic planning.
h. It helps in knowing past, present and future so that by using past and current data, future plans
can be chalked out.
SWOT Analysis provide information that helps in synchronizing the firm’s resources and capabilities with
the competitive environment in which the firm operates.
Limitations of SWOT Analysis
6. SWOT Analysis does stress upon the significance of these four aspects, but it does not tell how an
organization can identify these aspects for itself. There are certain limitations of SWOT Analysis which
are not in control of management. These include-
a. Price increase;
b. Inputs/raw materials;
c. Government legislation;
d. Economic environment;
e. Searching a new market for the product which is not having overseas market due to import
restrictions; etc.
Internal limitations may include-
a. Insufficient research and development facilities;
b. Faulty products due to poor quality control;
c. Poor industrial relations;
d. Lack of skilled and efficient labour; etc
Case study: SWOT Analysis of MSc. Infrastructure Engineering and Management program
The SWOT Analysis is illustrated in tabular format as below:
7. CONCLUSION
A realistic recognition of the weaknesses and threats that exist in the program is carried out to
counteract with robust and resilient set of strengths and opportunities. With comprehensive assessment
of positive and negative impacts, it is essential to build on strength and minimise the amount of
weaknesses. Similarly, prior to setting vision, mission and objectives of the program, it is best to seize
opportunities and nullify threats.
