General introduction of SWOT analyze

1. SWOT Analysis
Description and Purpose
 Professor and theorist: Ken Andrews
 SWOT, Strength, Weaknesses, Opportunities, and Threats:
Situation analysis
 Simple to use but most misused analysis method
Internal
resources and
capabilities External
possibilities
Strategic fit

2.  Practical control over internal environment and Lesser control over
external environment:
• The general environment
• The operating environment
 Analysis helps and enables:
• Make decisions to maintain a company’s comparative advantages
• Better understand and respond to the factors/ strategic issues that
have major and long-term impact on competitive objectives
 A review is required to deal with changing issues
• Forces
• Trends
• Characteristics of the market
SWOT Analysis
Description and Purpose

3. What can we do?
(internal S & W)
What might we do
(External O & T)
What do others
expect us to do?
(desires of
stakeholders)
What do we want
to do?
(Values & members)
SRATEGY
SWOT Analysis
Generic SWOT analysis: key questions that guide strategic
choice
What resources and
capacities do we
want to develop?
What opportunities
can we develop?
What should we be
caring about?
How can we build
shared expectations
among our
stakeholders?

4. Strengths Weaknesses
• Large amounts of information and variety
of issues
• Less discriminating of elements
• Works well both for profit-making and
not-profit companies
• Interpretation is likely to differ between
individual managers
• Does not require great deal of external
information, finance, or IT skills
• The analysis is static by nature. Most only
provide a snapshot of a situation
• Effective identify critical issues dealing
with complex situations in short time
• Limited to identify specific actions to
follow. E.g. “What?” > “So what?”
• Effective for team building • Weaknesses: more broadly to identified
& more difficult ascertain
• Strengths: more narrowly defined and
easier to recognize
• Excellent base to guide strategic analysis • Difficult for analysts to objectively
generate the matrix