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SwotLESSON (AutoRecovered)

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11 views2 pages

SwotLESSON (AutoRecovered)

Uploaded by

elysiantaraxia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ENTREPRENEURSHIP: SWOT ANALYSIS

AIMI, ABM 6 – GIDEON | REVIEWER | 2ND


QUARTER

 Weaknesses stop an organization from


performing at its optimum level.
SWOT

They are areas where the business needs to


SWOT is used to help assess the internal and improve to remain competitive:
external factors that contribute to a
company’s relative advantages and a weak brand, higher-than-average turnover, high
levels of debt, an inadequate supply chain, or lack
disadvantages.
of capital.
A SWOT analysis is generally used in 1. Where can we improve?
conjunction with other assessment 2. What products are underperforming?
frameworks, like PESTEL and Porter’s 5- 3. Where are we lacking resources?
Forces.

Findings from a SWOT analysis will help WEAKNESSES:


inform model assumptions for the analyst
community. 1.) High Cost
2.) Poor Customer
PESTEL: 3.) Tight Profit

 POLITICAL
 ECONOMIC OPPORTUNITIES
 SOCIAL
 TECHNOLOGICAL
 ENVIRONMENTAL  Opportunities refer to favorable
 LEGAL
external factors that could give an
organization a competitive advantage.
STRENGTHS For example, if a country cuts tariffs, a car
manufacturer can export its cars into a new
market, increasing sales and market share.
 Strengths describe what an
organization excels at and
what separates it from the 1. What technology can we use to improve
competition: operations.
2. Can we expand our core operations?
A strong brand, loyal customer base, a strong 3. What new market segments can we explore?
balance sheet, unique technology, and so on.

1. What is our competitive advantage? OPPORTUNITIES:


2. What resources do we have?
3. What products are performing well? 1.) Problems
2.) Change
3.) New Discoveries
4.) Unique knowledge
5.) Existing products/services
STRENGTHS:

1.) Efficiency
THREATS
2.) Low Cost
3.) Competent Employees
4.) Uniqueness
 Threats refer to factors that have the
5.) Quality
potential to harm an organization.

For example, a drought is a threat to a wheat-


WEAKNESSES
producing company, as it may destroy or reduce the
ENTREPRENEURSHIP: SWOT ANALYSIS
AIMI, ABM 6 – GIDEON | REVIEWER | 2ND
QUARTER
crop yield. opportunities and weaknesses.

Other common threats include things like rising


costs for materials, increasing competition, tight
labor supply. and so on. Potential questions to list external factors are:

1. What new regulations threaten operations? OPPORTUNITY


2. What do our competitors do well?
3. What consumer trends threaten business?  What trends are evident in the
marketplace?
 What demographics are we not targeting?

THREAT
HOW TO USE A SWOT ANALYSIS?
 How many competitors exist, and what is
their market share?
INTERNAL  Are there new regulations that potentially
could harm our operations or products?
What occurs within the company serves as a
great source of information for the strengths and
weaknesses categories of the SWOT analysis. EXTERNAL:

Examples of internal factors include financial and 1.) Cyberattack


human resources, tangible and intangible (brand 2.) Natural disaster
name) assets, and operational efficiencies. 3.) PESTEL

Potential questions to list internal factors are:

STRENGTH

 What are we doing well?


 What is our strongest asset?

WEAKNESS

 What are our detractors?


 What are our lowest-performing product
lines?

INTERNAL

1.) Assets
2.) Production
3.) Financial
4.) Sabotage
5.) Theft
6.) Confidential Data

EXTERNAL

What happens outside of the company is equally


as important to the success of a company as
internal factors.

External influences, such as monetary policies,


market changes, and access to suppliers, are
categories to pull from to create a list of

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