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STRENGTHS WEAKNESSES OPPORTUNITIES THREATS -SWOT ANALYSIS. FALL , 200 9. SWOT. It summarises the key issues from the business environment and the strategic capability of an organisation that are most likely to impact on strategy formulation.
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STRENGTHS WEAKNESSES OPPORTUNITIES THREATS-SWOT ANALYSIS FALL, 2009
SWOT • It summarises the key issues from the business environment and the strategic capability of an organisation that are most likely to impact on strategy formulation. • Aim: Identify the extent to which current strengths and weaknesses are capable of dealing with changes taking place in the macro or business environment. • Output: Choice of markets, competitive strategies
SWOT AT DIFFERENT LEVELS • AT THE MACRO LEVEL (CONSIDERING ALL MARKETS THAT THE COMPANY IS SERVING OR WILLING TO SERVE) • AT THE MARKET LEVEL (SPECIFIC TO AN INDUSTRY) • AT THE SUB-MARKET LEVEL (EG. HOUSING SECTOR IN CHINA)
TWO TYPES OF STRENGTHS AND WEAKNESS: • STRUCTURAL (ABOUT CURRENT STRATEGIC POSITION)(FOUND BY EXTERNAL ANALYSIS) • IMPLEMENTATIONAL (ABOUT COMPANY’S ABILITY TO IMPLEMENT ITS CHOSEN STRATEGIES)(FOUND BY INTERNAL ANALYSIS)
STRENGTHS AND WEAKNESSES SNC-LAVALIN, CANADA: • Engineering and construction firm and a world leader in ownership and management of infrastructures, offices in 30 countries • Strengths: FINANCIAL CAPABILITY, INTERNATIONAL NETWORK, EXPERIENCE, COMPANY CULTURE
STRENGTHS AND WEAKNESSES LAFARGE, FRANCE: • Building Materials (cement, concrete, gypsum, roofing etc.), operates in 75 countries • Strengths: RESEARCH AND DEVELOPMENT, JOINT VENTURE PARTNERS, BRAND IMAGE, DECENTRALISED ORGANISATIONAL STRUCTURE (BY MEANS OF AUTONOMOUS DIVISIONS
ABOUT STRENGTHS AND WEAKNESSES 1. STRENGTH FACTORS MAY AS WELL BE WEAKNESS FACTORS: • YOUNG STAFF ….. UNEXPERIENCED STAFF • VOLUME PLAYER ….. NOT INNOVATIVE 2. WHETHER A FACTOR IS A STRENGTH FACTOR OR A WEAKNESS FACTOR DEPENDS ON THE MARKET/ENVIRONMENT • EXPERIENCE IN ONE MARKET ….. LACK OF EXPERIENCE IN THE OTHER
ABOUT OPPORTUNITIES AND THREATS • FOR A SWOT ANALYSIS IN A MARKET : OPPORTUNITIES CAN BE NEW SUB-MARKETS, FAVOURABLE CHANGE IN THE COMPETITIVE ENV. ETC. (SAME IS TRUE FOR THREATS, SHRINKAGE IN DEMAND, NEW COMPETITORS ETC.) + PESTEL FACTORS • A SINGLE FACTOR MAY BE AN OPPORTUNITY FOR ONE MARKET WHEREAS IT MAY BE A THREAT FOR THE OTHER (EG. INCREASE IN DEMAND FOR SUMMER HOUSES ….. DEMAND FOR HOTEL SERVICES)
OPPORTUNITIES MAY BE NEW MARKETS/SUB-MARKETS (SCENARIOS ABOUT FUTURE) • UNDERGROUND CITIES • CONSTRUCTION IN SPACE • SUBMARINE CITIES • INTEGRATED SERVICES (FINANCE-DESIGN-CONSTRUCTION-REP./REHAB.) • DISPOSABLE BUILDINGS • ROBOTS USED DURING CONSTRUCTION • ADAPTABLE DESIGN (CHANGEABLE ENVIRONMENT)