SWOT ANALYSIS AND ITS IMPORTANCE. BACHELOR OF

Transcript:SWOT ANALYSIS AND ITS IMPORTANCE. BACHELOR OF:
SWOT ANALYSIS AND ITS IMPORTANCE. BACHELOR OF OFFICE AND INFORMATION MANAGEMENT YEAR TWO, SEMESTER TWO, 2024 SWOT ANALYSIS Each letter in SWOT analysis stand for its specific meaning.The letter represent the following meaning. Strength Weakness Opportunity Threats A SWOT analysis is that tool that identifies Strengths, Weakness, Opportunity and Threats that an organization face. SWOT Analysis is also sometimes known as SWOC Analysis where “S” stands for Strength ”W” Weakness ”O” Opportunity ”C” as Constraints which actually same as threats. SWOT Analysis provide information that is helpful in matching firms resources and capabilities to the competitive environment that a firm operates. The strengths and weaknesses come from within the firm while threats and opportunities arise on the external environment that a firm serves. STRENGTH These are the characteristics of the business that gives it an advantage over others. They are the qualities that enable a firm to accomplish its mission. These are the basis on which continued success can be made and continued/sustained. A firm need to ask its self the following questions; i. What advantage does the firm have that others donot have? Ii. What do they do better than any one else? Iii. What personnel resources do they have access to? POTENTIAL INTERNAL STRENGTHS INCLUDE THE FOLLOWING Adequate financial Resources Super Technology Skills Strong distribution Channels Customer loyalty Better manufacturing Capabilities Strong advertisement Campaign Protection from competitive pressure WEAKENESSES These are the limitations/ characteristics that places a firm at disadvantage relative than others. They result to strategic disadvantage. They prevent a firm to accomplish its mission and achieving the pull potential. These weakenesses detoriate influences on the organizational success and growth. POTENTIAL INTERNAL WEAKNESSES (EXAMPLES OF FIRMS WEAKNESS) Lack of managerial depth and talents Poor reputation of the firm Weak distribution network Too narrow productline( Producing one product instead of multiple products Unreliable products/services Weak marketing image resulting to weak brands OPPORTUNIES This refers to the favourable conditions in the environment that a firm operates on that provides a chance for an organization to make a greater profit. They arise to the external environment of the firm. Opportunies do not come frequently, therefore the management must exploit them immediately without delay. Each opportunity must be analysed in terms of Profitability POTENTIAL OPPORTUNIES (EXAMPLES OF OPPORTUNITIES) Changing customer tastes Technology advances New distribution channel Change in social pattern, population profile, life cycle change. THREATS These are unfavorable conditions in