SWOT ANALYSIS STRATEGIC MANAGEMENT

• SWOT  ANALYSIS
• STRATEGIC MANAGEMENT
• INVOLVE A SYSTEMATIC ANALYSIS OF THE INTERNAL STRENGTH AND WEAKNESSES OF A BUSINESS FIRM( FINANCIAL,TECHNOLOGICAL,MANAGERIAL) AND OF THE EXTERNAL OPPORTUNITIES AND THREATS IN THE FIRM’S ENVIRONMENT LIKE CHANGES IN THE MARKETS,LAWS,TECHNOLOGY AND ACTIONS OF THE COMPETITORS.

1. STRENGTH MEANS INHERENT CAPACITY WHICH AN ORGANIZATION CAN USE TO GAIN STRATEGIC ADVANTAGE
2. WEAKNESS:- LIMITATION
3. OPPORTUNITIES: FAVORABLE CONDITIONS
4. THREATS:-UNFAVORABLE CONDITIONS

• INTERNAL FACTORS
• STRENGTH( POSITIVE)

1. PROVED AND LATEST TECHNOLOGY
2. RELIABLE CHANNEL PARTNER
3. HIGH QUALITY PRODUCT
4. ESTABLISHED BRAND IMAGE
5. QUALITY AND EFFICIENT MANPOWER
6. BEST LOCATION
7. WELL BALANCED CAPITAL STRUCTURE

• WEAKNESSES ( NEGATIVE)

1. INADEQUATE WORKING CAPITAL
2. OVER DEPENDENT ON IMPORTED RM
3. UNCERTAIN CASH FLOW
4. HIGH COST
5. INEXPERIENCED STAFF
6. EXISTENCE OF PRODUCTION BOTTLENECKS
7. LACK OF MANAGEMENT INFORMATION SYSTEM

• EXTERNAL FACTORS
• OPPORTUNITIES

1. BOOMING STOCK MARKET
2. FAVORABLE GOVT POLICY
3. EXPORT OPPORTUNITIES
4. POSITIVE INDUSTRY TRENDS
5. AVAILABILITY OF LOW TECHNOLOGY
6. LOW RATE OF INTEREST

• THREATS

1. EXCESSIVE GOVT CONTROL
2. VERY FEW ENTRY BARRIERS
3. INTENSE COMPETITION
4. ENTRY OF GLOBAL CORPORATIONS
5. UNSTABLE GOVT
6. FAST CHANGING TECHNOLOGY

• SWOT ANALYSIS

1. ELIMINATING THE WEAKNESSES THAT EXPOSE TO EXTERNAL THREATS
2. HIGHLIGHT THE STRENGTH
3. CONVERT THE THREAT/WEAKNESSES INTO ADVANTAGES
4. MATCH THE COMPANY’S STRENGTH TO EXPLOIT THE OPPORTUNITIES

• SWOT MATRIX
• REPRESENTED BY 2X2 MATRIX. STRENGTH AND OPPORTUNITIES ARE BOTH POSITIVE CONSIDERATIONS AND WEAKNESSES AND THREATS ARE BOTH NEGATIVE CONSIDERATIONS.
• IT IS AN IMPORTANT MATCHING TOOL THAT HELPS MANAGERS IN GENERATING FOUR TYPES OF STRATEGIES

1. SO
2. WO
3. ST
4. WT

• SO STRATEGIES:- TRY TO IMPROVE THE COMPANY’S STRENGTH RELATIVE TO ITS ENVIRONMENTAL OPPORTUNITIES
• WO STRATEGIES: OVERCOME WEAKNESSES AND FOCUS TO TAP THE OPPORTUNITIES

• ST STRATEGIES: MAXIMIZE THE ADVANTAGE OF INTERNAL STRENGTH AND MINIMIZE THE EXTERNAL ENVIRONMENT THREATS
• WT STRATEGIES: DEFENSIVE STRATEGIES
• CRITICISM

1. DOES NOT DESCRIBE HOW TO ACHIEVE A COMPETITIVE POSITION
2. STATIC ASSESSMENT OF THE ORGANIZATION
3. OVEREMPHASIS ON FEW STRENGTH/WEAKNESSES