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SWOT-ANALYSIS AS A TOOL OF EFFECTIVE COMPANY
MANAGEMENT
STRELNIKOV A.V., student
National Research Tomsk Polytechnic University
E-mail: Strelnikov_alex@sibmail.com
Scientific adviser: E.Y. Kalmykova, associate professor of management department, c.e.s.
Language adviser: O.V. Anikina, senior lecturer of business English department
SWOT ANALYSIS is one of the most used forms of business analysis. A SWOT examines and
assesses the impacts of internal strengths and weaknesses, and external opportunities and threats, on the
success of the "subject" of analysis. An important part of a SWOT analysis involves listing and evaluating
the firms strengths, weaknesses, opportunities, and threats. Each of these elements is described:
A firms strengths and weaknesses (i.e., its internal environment) are made up of factors over which
it has greater relative control. These factors include the firms resources; culture; systems; staffing practices;
and the personal values of the firms managers. Meanwhile, an organizations opportunities and threats (i.e.,
its external environment) are made up of those factors over which the organization has lesser relative
control. These factors include, among others, overall demand, the degree of market saturation, government
policies, economic condition, social, cultural, and ethical developments; technological developments;
ecological developments, and the factors making up Porters Five Forces (i.e., intensity of rivalry, threat of
new entrants, threat of substitute products, bargaining power of buyers, and bargaining power of suppliers.)
SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic position of
the business and its environment. Its key purpose is to identify the strategies that will create a firm specific
business model that will best align an organization’s resources and capabilities to the requirements of the
environment in which the firm operates. In other words, it is the foundation for evaluating the internal
potential and limitations and the probable/likely opportunities and threats from the external environment. It
views all positive and negative factors inside and outside the firm that affect the success. A consistent study
of the environment in which the firm operates helps in forecasting/predicting the changing trends and also
helps in including them in the decision-making process of the organization.
SWOT Analysis is carried out using SWOT-MATRIX:
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An overview of the four factors (Strengths, Weaknesses, Opportunities and Threats) is given
below:
Strengths- Strengths are the qualities that enable us to accomplish the organization’s mission.
These are the basis on which continued success can be made and continued/sustained. Strengths can be
either tangible or intangible. These are what you are well-versed in or what you have expertise in, the traits
and qualities your employees possess (individually and as a team) and the distinct features that give your
organization its consistency. Strengths are the beneficial aspects of the organization or the capabilities of an
organization, which includes human competencies, process capabilities, financial resources, products and
services, customer goodwill and brand loyalty. Examples of organizational strengths are huge financial
resources, broad product line, no debt, committed employees, etc.
Weaknesses- Weaknesses are the qualities that prevent us from accomplishing our mission and
achieving our full potential. These weaknesses deteriorate influences on the organizational success and
growth. Weaknesses are the factors which do not meet the standards we feel they should meet. Weaknesses
in an organization may be depreciating machinery, insufficient research and development facilities, narrow
product range, poor decision-making, etc. Weaknesses are controllable. They must be minimized and
eliminated.
Opportunities- Opportunities are presented by the environment within which our organization
operates. These arise when an organization can take benefit of conditions in its environment to plan and
execute strategies that enable it to become more profitable. Organizations can gain competitive advantage by
making use of opportunities. Organization should be careful and recognize the opportunities and grasp them
whenever they arise. Selecting the targets that will best serve the clients while getting desired results is a
difficult task.
Threats- Threats arise when conditions in external environment jeopardize the reliability and
profitability of the organization’s business. They compound the vulnerability when they relate to the
weaknesses. Threats are uncontrollable. When a threat comes, the stability and survival can be at stake.
Examples of threats are - unrest among employees; ever changing technology; increasing competition
leading to excess capacity, price wars and reducing industry profits; etc.
Concerning the advantages of SWOT Analysis:
SWOT Analysis is instrumental in strategy formulation and selection. It is a strong tool, but it
involves a great subjective element. It is best when used as a guide, and not as a prescription. Successful
businesses build on their strengths, correct their weakness and protect against internal weaknesses and
external threats. They also keep a watch on their overall business environment and recognize and exploit
new opportunities faster than its competitors.
SWOT Analysis helps in strategic planning in following manner:

It is a source of information for strategic planning.

Builds organization’s strengths.

Reverse its weaknesses.

Overcome organization’s threats.

It helps in identifying core competencies of the firm.
SWOT Analysis provide information that helps in synchronizing the firm’s resources and
capabilities with the competitive environment in which the firm operates.
Somewhat about Limitations of SWOT Analysis:
SWOT Analysis is not free from its limitations. It may cause organizations to view circumstances
as very simple because of which the organizations might overlook certain key strategic contact which may
occur. Moreover, categorizing aspects as strengths, weaknesses, opportunities and threats might be very
subjective as there is great degree of uncertainty in market. SWOT Analysis does stress upon the
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significance of these four aspects, but it does not tell how an organization can identify these aspects for
itself.. These include:

Price increase;

Inputs/raw materials;

Government legislation;

Economic environment;

Searching a new market for the product which is not having overseas market due to import
restrictions; etc.

Internal limitations may include
Insufficient research and development facilities;

Lack of skilled and efficient labour; etc
Summing up all below we can conclude that SWOT analysis is a quick and simple tool to
understand the overall big picture. It is the starting point of strategic planning. Once you have a SWOT
complete, you may want to try more advanced analysis, such as Porter's Five Forces.The most important
take-away from this exercise is to apply this knowledge to your small business. Take all necessary actions to
reduce the threats to your company and position yourself to take advantage of the opportunities.
References:
1. Adams, J. (2008) Analyze Your Company Using SWOTs, Supply House Times, Vol. 48 Issue 7,
pp. 26-28.4.
2. De Witt, B. and Meyer, R. (2009) Strategy: Process, Content, Context, 2nd ed., Oxford:
International Thompson Business Press.
3. Marilyn M. Helms, Judy Nixon, (2010) "Exploring SWOT analysis – where are we now, Journal
of Strategy and Management, Vol. 3 Iss: 3, pp.215 – 251
4. Thompson, J. (2006) Strategic Management, 4th Edition, London: Thomson.
JUST-IN-TIME SYSTEM
Subbotina K.E., Kobzeva O.A.
National Research Tomsk Polytechnic University
-mail: subbotina_k3007@mail.ru
Language adviser: Chayka Y.A., senior lecture
In today's competitive world shorter product life cycles, customers rapid demands and quickly
changing business environment is putting lot of pressures on manufacturers for quicker response and shorter
cycle times. Now the manufacturers put pressures on their suppliers. One way to ensure quick turnaround is
by holding inventory, but inventory costs can easily become prohibitive. A wiser approach is to make your
production agile, able to adapt to changing customer demands. This can only be done by Just-in-Time (JIT)
philosophy.
Just in time (JIT) is a production strategy that strives to improve a business return on investment by
reducing in-process inventory and associated carrying costs. Just-in-time production method is also called
the Toyota Production System. To meet JIT objectives, the process relies on signals or Kanban between
different points in the process, which tell production when to make the next part. Kanban are usually 'tickets'
but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly,
JIT focuses on continuous improvement and can improve a manufacturing organization's return on
investment, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow,
employee involvement and quality.
JIT originated in Japan. Its introduction as a recognized technique/philosophy/way of working is
generally associated with the Toyota motor company, JIT being initially known as the "Toyota Production
System".
Within Toyota Taiichi Ohno is most commonly credited as the father/originator of this way of
working. The beginnings of this production system are rooted in the historical situation that Toyota faced.
After the Second World War the president of Toyota said "Catch up with America in three years, otherwise
the automobile industry of Japan will not survive". At that time one American car worker produced
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