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SWOT Analysis Template SWOT Analysis Overview What is SWOT Analysis? A SWOT (Strengths, Weaknesses, Opportunities, and Threats) is a tool used to provide a general or detailed snapshot of a company`s health. Think of your SWOT as a tune-up that every business needs periodically to diagnose and fix what’s a bit worn, what’s on the verge of breaking down, or what’s already broken and needs replacement--so that you can keep the business humming—even better than it has in the past. 9SWOT offers professional managers an effective evaluative technique to aid the decision making process. 9It can not find the solution for you, but it will ensure that issues are: identified, classified and prioritized clearly, showing the problem in terms of key underlying issues. Decision makers can then see the answer. 9It`s a four-part approach to analyzing a company`s overall strategy or the strategy of its business units. All four aspects must be considered to implement a long-range plan of action. Remember, It’s Virtually Impossible To Focus Too Much On What You Do Well And What Creates Profits For Your Business. © Copyright 2006 - Advanced Integrated Technologies Group, Inc., All rights reserved. Page 2 SWOT Example Strengths: ¾ We are able to respond very quickly as we have no red tape, no need for higher management approval, etc. ¾ We are able to give really good customer care, as the current small amount of work means we have plenty of time to devote to customers ¾ Our lead consultant has strong reputation within the market ¾ We can change direction quickly if we find that our marketing is not working ¾ We have small overheads, so can offer good value to customers Weaknesses: ¾ Our company has no market presence or reputation ¾ We have a small staff with a shallow skills base in many areas ¾ We are vulnerable to vital staff being sick, leaving, etc. ¾ Our cash flow will be unreliable in the early stages Opportunities: ¾ Our business sector is expanding, with many future opportunities for success ¾ Our local council wants to encourage local businesses with work where possible ¾ Our competitors may be slow to adopt new technologies Threats: ¾ Will developments in technology change this market beyond our ability to adapt? ¾ A small change in focus of a large competitor might wipe out any market position we achieve ¾ The consultancy might therefore decide to specialize in rapid response, good value services to local businesses. Marketing would be in selected local publications, to get the greatest possible market presence for a set advertising budget. The consultancy should keep up-to-date with changes in technology where possible. A start-up small consultancy business might carry out the © Copyright 2006 - Advanced Integrated Technologies Group, Inc., All rights reserved.s Page 3 SWOT Analysis How Does SWOT Analysis Work? 9The strategy is to look at the organizations current performance (strengths and weaknesses) and factors in the external environment (opportunities and threats) that might affect the organizations future. 9Once the attributes for each section have been identified it is possible to determine the point of balance. Eventually the points of balance of strengths versus weaknesses and opportunities versus threats can be plotted together. 9For example, an information technology department needs to determine the strengths and weaknesses of its people and its technology. It also needs to make sure the IT strategy complements the company`s business goals. The department head needs to ask: What is each staff member good at? What are they not good at? 9Project leaders also must consider opportunities and threats -- or customers and competitors. How attractive is the market or direction they`re considering? What`s their market share and cost structure? POSITIVE NEGATIVE INTERNAL EXTERNAL Strengths Opportunities Weaknesses Threats © Copyright 2006 - Advanced Integrated Technologies Group, Inc., All rights reserved. Page 4 SWOT Example Delta Air Lines Inc., chose to invest in a multibillion-dollar customer service system that addresses the flight delay problems experienced by 20% of its passengers. Although some companies might think the move was excessive considering 80% of customers have no problems, Delta believed customer service was an important area for increasing market share and that competitors could pose a threat if Delta didn`t address the problem. Another example is Dell Computer Corp., which is a great example of how an IT company can use a SWOT analysis to carve out a strong business strategy, according to Glazer. Dell recognized that its strength was selling directly to consumers and keeping its costs lower than those of other hardware vendors. As for weaknesses, the company acknowledged that it lacked solid dealer relationships. Identifying opportunities was an easier task. Dell looked at the marketplace and saw that customers increasingly valued convenience and one-stop shopping and that they knew what they wanted to purchase. Dell also saw the Internet as a powerful marketing tool. On the threats side, Dell realized that competitors like IBM and Compaq Computer Corp. had stronger brand names, which put Dell in a weaker position with dealers. Dell put together a business strategy that included mass customization and just-in-time manufacturing (letting customers design their own computers and custom-building systems). Dell also stuck with its direct sales plan and offered sales on the Internet. Clarity in strategy works. Fuzzy strategies fail. Most strategies fail b © Copyright 2006 - Advanced Integrated Technologies Group, Inc., All rights reserved. ar direction Page 5 ... - tailieumienphi.vn