SWOT Analysis SWOT analysis is a tool for determining strategies in organizations, projects, individuals or groups, based on the assessment of internal aspects (strengths and weaknesses) and external aspects (opportunities and threats). In short, with this tool we analyze the interactions between the good and the bad of the company / person / project / business / team / etc, to determine strategies. Reference: https://www.e-startupindia.com/blog/how-to-conduct-swot-analysis-as-per-iso-9001-2015/10203.html https://www.ingenioempresa.com/en/swot-analysis/ It takes into consideration internal resources & capabilities. These are referred to as strengths and weaknesses. It helps in determining the positive aspects of a process and the shortcomings, the combination of which has resulted in a loophole. Besides, the external aspects are determined. These are referred to as opportunities and threats. These give a clear picture of the potential threats or risks. Strength As per the ISO 9001 directives, the real strength of an organization lies in the perception of the business environment and the needs and expectations of the stakeholders. Using their organizational knowledge to a careful analysis of the strengths will gradually assist the organization to grab opportunities for improvements. Strengths – Internal issue Years of Experience Business knowledge Financial strength Competitive benefits Strong Customer Relationships Weaknesses The ISO 9001:2015 standard requirements highlight the need for a fair evaluation or appraisal of the QMS to determine where the organization stands viz-a-viz the desired position. This approach is also referred to as the ‘gap analysis’. The aim is to address those gaps which act as key factors behind the challenges of an organization. Weaknesses - Internal Issue Lack of customer variety Narrow market Employee Turnover Lack of knowledge of new equipment Low productivity Opportunities As per the ISO 9001:2015, the opportunity of an organization’s top management lies in being fully involved in the QMS by formulating the quality objectives vis-a-vis the quality policy. Evidently, the related ISO standards also discuss the opportunity to spread awareness of the quality policy of the organization and quality objectives at all managerial levels. Furthermore, the ISO certification 9001 emphasizes to look out opportunities for proactive enhancement instead of a reactive enhancement. This means to work out on preventive actions rather than taking actions only when the things go wrong. Opportunities- External Issue Available capacity New markets New business development High demand for the product Threats Under ISO 9001:2015, Risk or ‘threat’ is elaborated as “the effect of uncertainty”. This can be favourable as well as detrimental. Hence, the organization must: Recognize its potential business risks Ascertain the consequences of those risks Engage in risk management activities Monitor the scenario for any adversity. Threats – External Issue Competition Change in industry regulations Strength of dollar Environment Access to capital Expiring Patents SWOT Analysis of NIKE Reference: https://www.quality-assurance-solutions.com/swotanalysis-nike.html Strength A very professionally competitive company. Employs over thirty thousand people across the world. Has ownership of no physical factories so production can be moved to a more cost effective location when necessary. Has a very strong marketing campaign that increases brand familiarity. Very well branded among consumers. Offers their products worldwide. Have offices in forty five different countries. Fortune 500 company. Chains of retail stores such as Niketown. Has ventured into many different rebranding opportunities with successful results. Providing lightweight shoes by incorporating lunarlite foam materials. Weaknesses Profits are largely dependent on the footwear products while other branded products are not as strong. History of violations of over time laws and minimum wage rates in Vietnam. Accusations of poor conditions in the work place. Accusations of exploiting workforces that will work for cheap in overseas countries. Constant focal point for negative criticism by the anti-globalization groups. Opportunities Creating sportswear items by incorporating the waste from regular manufacturing. Stepping into the line of economy boosting projects that will encourage recycling. Product development that changes as the trends change. Expansion into sport sunglasses and jewelry lines. Expansion in the global markets to create larger brand recognition. Reducing controversy surrounding their trade and production practices. Threats Operating business internationally opens them to the possibilities of currency value fluctuations that can lead to losses. Competitors are becoming more aggressive and creating high quality products that are taking from the profits of NIKE. Sensitivity to price among consumers leads them to purchase the most cost effective pair of sports shoes. Maintaining the reputation of being eco-friendly. Managing the financial conditions in the economy today. How to Perform SWOT Analysis The components of the SWOT analysis can be placed in a matrix, but you can also determine them one by one and then confront them to determine the strategies. It is very common for companies to perform SWOT analysis to define their strategies. The step by step that you will see applies no matter if you are a company, person, project, etc., but from now on we will talk about companies. Step 1: What is the objective This step may seem logical but I must mention it. If you are going to do a SWOT matrix, it is for a reason. Is it the strategic planning of the year? A segmented evaluation of the employees? A mega expansion project? Attendees should be clear on why they are gathered. Step 2: Defining Threats How is the market view changing? What is the competition doing? Are there any weaknesses that could be a threat to the company? Are the quality standards of our product changing? What obstacles are we facing? How are government measures affecting us? Step 3: Now the Opportunities What are the market trends in favor? What technological changes may represent an opportunity? What should we do that we haven’t done and they have? What events will allow us to expand the brand? How are people behaving around this issue? Are there any strengths we can exploit? Step 4: What are my Strengths? What are we better at? What are the company’s advantages? What are the factors that make us worthy of the opportunity? What is our value proposition? How is our financial muscle? What strengths does the market see in us? Step 5: Detecting weaknesses Where can we improve? What should we stop doing? What negative aspects has the market and customers mentioned? Why are we losing sales? Where do we lack more experience? What does the competition have that we do not have and is affecting us? Step 6: Defining the Strategies Strategies are drawn by comparing strengths, opportunities, threats and weaknesses. How can we use our strengths to take advantage of our opportunities? SUCCESS APPROACH . How can our strengths be used to mitigate threats? REACTION APPROACH . How can we take advantage of opportunities to correct our weaknesses? ADAPTATION APPROACH . How can we stand our ground even with the threats seen? SURVIVAL APPROACH .
