SWOT ANALYSIS
Matthew Gurto
Christopher Anderson
Robert Williams
Kathryn Connelly
22 October 2007
Agenda




Origins
Importance
Rules
Analytical Process
 Strengths
 Weaknesses
 Opportunities
 Threats


Limitations
Class Exercise
Early Origins Of SWOT

Sun-Tzu
 2,000
Years Ago
 “Know Your Enemy,
Know Yourself, And Your
Victory Will Not Be
Threatened.”
Sun Tzu
Picture Source: http://www.martinfrost.ws/htmlfiles/suntzu.jpg
Modern Origins Of SWOT Analysis

Stanford Research Institute: 1960-1970

Albert Humphrey
 Funded By Fortune 500 Companies
 Goal: Why Corporate Planning Failed
 Case Study:




1100 Companies And Organizations Interviewed
250-Item Questionnaire
5,000+ Executives Participated
Creation Of SWOT Analysis
Importance

Foundation For Nuanced And Insightful
Decision Making

Applied To Organizational Planning And
Strategy Development

Maximizes Potential Strengths And
Opportunities

Minimizes Weaknesses And Threats
Rules For Application

Eliminate Biases

Although, It IS Subjective

Distinguish Between Present
Status And Future

Consider Competitive Or
Influencing Factors
Competing Businesses
Picture Source: http://www.bhmag.fr/images/Coke%20vs.%20Pepsi.jpg
SWOT: An Analytical Process

Align Internal With External
 Internal = Strengths And
Weaknesses

External = Opportunities
And Threats

Consider Positive And
Negative Effects
Alignment Of Contributing Factors
Picture Source: http://www.ambire.ca/images/swot.jpg
Strengths

Measurement Of Inferior Capabilities
 Development Of A Competitive Advantage





Strategies
Skills/Competencies
Knowledge
Resources
Accept Others Perspectives
 Walk In Different Shoes
Picture Source: http://www.thom.org/photos/shoe.jpg
Strengths

Not A Strength If:
 Shared With A
Competitor

Not A Unique
Characteristic

Considerations:
 Useful?
 Innovative?
 Significance?
 Gain Or Loss?
 Valuable?
 Reliable?
Strengths- Business
 Examples
Questions:Of
Specific Strengths:

 Superior
What Advantages
ProductDoes
Performance
Your Company Have Over
The
Competition?
 Durability,
Quality, Reliability
 New Innovations And Patented Products
 What Unique Or Lowest-Cost Resources Do You
 Have
Efficient
Employee/Manufacturing
Capacity
Access
To?

Development Of Brand Or Reputation
 Strong
What Are
Your Assets
Or Core

Marketing
And
SalesCompetencies
Strategy
 Availability And Location Of Products Or
Services
Where Are You Making Money?

What Experience Does Your Business Have?
Opportunities

Examine Strengths And Weaknesses


New Situations/Circumstances


Externally And Positively Focused
Favorable To Prospective Situations
Supports Product Demand Or Service
 Allows
Company To Enhance Its Position
Opportunities
Weaknesses for a market competitor are
often opportunities for others
 Eliminate weaknesses and capitalize
strengths

 Strengths

= opportunity?
Factors which create opportunities:
 Legal
 Political
 Technological
 Cultural
Opportunities- Business


Mergers, Joint Ventures Or Strategic Alliances
New Attractive Market Segments






International Markets
Loosening Of Regulations
Capitalize On Competitors' Vulnerabilities
Industry Or Lifestyle Trends
Technology Development, Changes And
Innovation
Global Influences
Threats

A Warning Of Impending Danger

Speculative Assessment


Worst Case Scenarios
External

No Control
 Proactively Develop Contingency Plans
Threats

Classify Types/Seriousness Of Threats

Probability Of Occurring

Recognizing Competition
 …Always A Threat

Ability To Forecast Change
Threats- Business








Competitor’s Status
Market Demand
New Legislation
Environmental Factors
Negative Publicity
Employee Dissatisfaction
Technological Innovations
Relationship With Resource Suppliers
Picture Source: http://twiginternational.com/images/ThreatsDiagram.gif
Limitations

Identifies, Does Not Create
 Strategy And Objectives

Remember…
 It IS Subjective

Represents Specific Point In Time

Do Not Overextend Its Application
Class Application
Picture Source: http://www.mciis.org/index.php
Sources














http://www.businessballs.com/swotanalysisfreetemplate.htm
http://www.mindtools.com/pages/article/newTMC_05.htm
http://www.valuebasedmanagement.net/methods_swot_analysis.html
http://www.bplans.com/dp/article.cfm/148
http://business.nmsu.edu/~dboje/sbc/pages/page3.html#strengths
http://www.12manage.com/methods_swot_analysis.html
http://entrepreneurs.about.com/od/businessplan/a/swotanalysis.htm
http://www.mciis.org/index.php
http://www.quickmba.com/strategy/swot/
http://marketingteacher.com/Lessons/lesson_swot.htm
http://www.tutor2u.net/business/strategy/SWOT_analysis.htm
http://www.stfrancis.edu/ba/ghkickul/stuwebs/btopics/works/swot.htm
http://www.mindtools.com/pages/article/newTMC_05_1.htm
http://www.1000ventures.com/business_guide/crosscuttings/swot_analysis.html
Thank You

For Questions, Comments, Or A Copy Of
The Slides:




Matthew Gurto: mgurto28@mercyhurst.edu
Christopher Anderson: cander47@mercyhurst.edu
Robert Williams: rwilli45@mercyhurst.edu
Kathryn Connelly: kconne58@mercyhurst.edu