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1、SWOT AnalysisVincent LiSWOT AnalysisA widely used framework for organizing and using data and information gained from situation analysisEncompasses both internal and external environmentsOne of the most effective tools in the analysis of environmental data and informationIt is an instrument within s
2、trategic planningWhat is SWOT analysis?Developed as a tool for marketing in which internal and external environment are scanned as an important part of the strategic planning process.Internal factors can be classified as strengths (S) or weaknesses (W).External factors can be classified as opportuni
3、ties (O) or threats (T). Strengths and Weaknesses of the internal environment e.g. staff (or internal customers), office technology, wages and finance, etc.Opportunities or Threats from the external micro-environment e.g. clients, agents and distributors, suppliers, our competitors, etc. and macro-e
4、nvironment e.g. trends in Political, Economic, Social, Technological, Legal and Environmental factors (PESTLE).Why use SWOT tools? SWOT is a structured analytical framework.SWOT can be used in conjunction with other tools for audit and analysis e.g. PEST(LE) analysis, Porters Five-Forces analysis.SW
5、OT helps to focus on areas of strength, recognise limitations and develop opportunities in the most promising directions. SWOT is used widely because it is quick and easy to learn.SWOT FactorsFactors affecting an organization can usually be classified as: Internal factorsStrengths (S) Weaknesses (W)
6、External factorsOpportunities (O) Threats (T)StrengthsOpportunitiesWeaknessesThreatsStrengths and weaknessesScale and cost economiesSize and financial resourcesIntellectual, legal, and value of reputationOpportunities and threatsTrends in the competitive environmentTrends in the technological enviro
7、nmentTrends in the socio-cultural environmentStrengths (Internal)Resources and capabilities that can be used as a basis for developing a competitive advantage. Characteristics that can be controlled.Positive tangible and intangible attributes, internal to an organization.Consider this from the techn
8、ologists point of view and from the point of view of the people who will use the data.Dont be modest. Be realistic. If you are having any difficulty with this, try writing down a list of the characteristics of Earth observation missions and data products. Some of these will hopefully be strengths!Re
9、member that not all strengths offer an advantage over competing techniques. For example, if all techniques generate global products then although a strength it is not an advantage.TIPSWeaknesses (Internal)In some cases, a weakness may be the flip side of a strength. Factors that are within an organi
10、zations control that detract from its ability to attain the core goal. In which areas might the organization be improved.OpportunitiesDevelopments in science and technology.Changes in markets on both a national and international scale.Changes in government policy e.g. removal of international trade
11、barriers, signing Kyoto agreement, homeland security and the fight against terrorism.Changes in social patterns, population profiles, lifestyle changes, etc.Mergers, joint ventures or strategic alliances based on geopolitical and public-private partnerships.Non-investment or other reason leading to
12、a market being vacated by a competitor technology.An unfulfilled customer need e.g. a specific data requirements or data required for a particular geographical area.Opportunities to add value and increase profit margin e.g. new business models for the knowledge economy and information society.A late
13、r stage in SWOT analysis is to look at the strengths and ask whether these open up any opportunities. Alternatively, look at weaknesses and ask whether you could open up opportunities by eliminating them. Analysing the external environment may reveal certain new opportunities and emerging applicatio
14、ns. External attractive factors that represent the reason for an organization to exist and develop. TIPSThreatsSome examples of such threats include:Changing demand.Emergence of new technologies or innovative products and services.New regulations or increased trade barriers e.g. environmental lobby
15、seeks a ban on launching spacecraft.Government subsidies for competing technologies or disadvantageous taxation e.g. gaseous emissions.Competing technologies that blend better with societal and technological trends.Changing specifications for products and services.Economic sustainability.Could a non
16、-technical weaknesses seriously undermine the technology? External factors, beyond an organizations control, which could place the organizations mission or operation at risk. The organization may benefit by having contingency plans to address them should they occur. Classify them by their “seriousne
17、ss” and “probability of occurrence”TIPSFor the external factors (OT)Must plan forMinimum resources if anyMaintain flexibility in planForget itHighLowHighLowProbability of occurrenceSeriousness of ImpactThe SWOT matrixWeaknesses can be converted into strengths with strategic investment. Threats can b
18、e converted into opportunities with the right resourcesWeaknesses that cannot be converted become limitations which must be minimized if obvious or meaningful to customers or stakeholdersThe assessment of strengths and weaknesses should look beyond products, services and resources to examine process
19、es that meet customers or stakeholders needs Achieving goals and objectives depends on transforming strengths into capabilities by matching them with opportunitiesCreate a plan of actionWhat steps can you take to:Capitalize on or maximize your strengthsOvercome or minimize your weaknessesTake advant
20、age of some new opportunitiesRespond to the threatsSet goals and objectives, like with any other planWhat is a productive SWOT analysisStay focused. Be specific and avoid grey areas. Keep your swot short and simple. Avoid complexity and over analysisIt can be a mistake to complete just one generic S
21、WOT analysis for the entire organizationWhen we say SWOT analysis, we mean SWOT analysesCollaborate with other functional areasInformation generated from the SWOT analysis can be shared across functional areasSWOT analysis can generate communication between managers that ordinarily would not communi
22、cateCreates and environment for creativity and innovationExamine issues from the customers/ stakeholders perspectiveWhat do stakeholders (and non-stakeholders) believe about us as an organization?What do stakeholders (and non-stakeholders) think of our product quality, service quality, customer serv
23、ice, price, overall value, convenience, and promotional messages in comparison to our competitors?What is the relative importance of these issues as stakeholders see them?Taking the stakeholders perspective is the cornerstone of a well done SWOT analysisLook for causes, not characteristicsCauses for
24、 each issue in a SWOT analysis can often be found in the organizations and competitors resourcesMajor types of resources: Financial, Organizational, Intellectual, Informational, Legal, Relational, Human, ReputationSeparate internal issues from external issuesFailure to understand the difference betw
25、een internal and external issues is one of the major reasons for a poorly conducted SWOT analysis. Know Yourself, Customer/Stakeholder, Competitors, EnvironmentSuccessful SWOT analysisBe realistic about the strengths and weaknesses.Analysis of case studies should distinguish between state of the art
26、 of technology and potential or unproven technologies.Be specific. Avoid grey areas. Highlight distinctive characteristics that differentiate between techniques.Keep your SWOT analysis short and simple. Avoid complexity and over analysis.Remember. SWOT is subjective.A word of caution, SWOT analysis
27、can be very subjective. Do not rely on it too much. Two people or two applications rarely come-up with the same final version of SWOT.ExampleA start-up small consultancy business might carry out the following SWOT analysis:Strengths: We are able to respond very quickly as we have no red tape, no nee
28、d for higher management approval, etc.We are able to give really good customer care, as the current small amount of work means we have plenty of time to devote to customersOur lead consultant has strong reputation within the marketWe can change direction quickly if we find that our marketing is not
29、workingWe have little overhead, so can offer good value to customersExamples of strengths include:patentsstrong brand namesgood reputation among customerscost advantages from proprietary know-howexclusive access to high grade natural resourcesfavorable access to distribution networksyour specialist
30、marketing expertise. a new, innovative product or servicelocation of your businessquality processes and procedures any other aspects that add value to the product or service e.g. digital workflow and data distribution.ExampleWeaknesses: Our company has no market presence or reputationWe have a small staff with a shallow skills base in many areasWe are vulnerable to vital staff being sick, leaving, etc.Our cash flow will be unreliable in the early stagesFor example, each of the following may be considered weaknesses:lack of patent protectiona weak brand namepoor reputa
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