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  • 8/6/2019 Final Presentation - Renewed

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    S.W.O.T. MATRIX

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    Syed Muhammad Nasir(L1S09MBEX0025 )Muhammad Junaid-ul-Haq Siddiqui (L1S08MBEX1068)

    Hafiz Muhammad Bilal (L1S09MBEX2009)

    Salman Butt (L1S09MBEX0019)

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    S.W.O.T. Descriptiony SWOT Analysis is one of the effective analytical tools to

    evaluate a situation. The situation may be strategicrelated or capabilities related. SWOT Analysis is oftenused along with strategic planning and it forms one of the key critical success factors in a strategic planningprocess.

    y

    There are many ways how a SWOT analysis is used. Thispresentation aimed to share how SWOT analysis can beused as an essential tool to strategic planning process

    y While detail analysis is performed, it can become acomplex process because it entails several data analysis.

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    S.W.O.T. FactorsS.W.O.T. Factors

    Strengths

    Opportunities

    Weakness

    Threats

    Internal factors

    to Organization

    External factorsto Organization

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    S.W. and O.T.

    Strengths and weaknesses: These tend to be internalresources and capabilities.

    y

    Skills and competencies of managementy Quality of the product

    Opportunities and threats: These tend to be external

    factors.y D evelopment of new markety Government legislationy New competitors arriving on the scene

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    S.W.O.T.Internal FactorsStrengths:To collect data for the Strengths in relation to ourcompetitor, we may use the following as a guide:

    y What are the advantages of our company over ourcompetitor?

    y What are the customer benefits we can offer?y

    What are our customer relationships?y What are the offers to customers that we can fulfill?y What are the low cost operation capabilities?y What are our financial strengths?

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    S.W.O.T.Internal Factors

    Weakness:Similar to the strengths, the Weaknesses is another internalfactor that deals with the weaknesses of the operation. Theimpact of these weaknesses is more urgent when compared it with the competitors who are ahead of us. Below is theguideline we can use to identify weaknesses

    y

    What are the setback with our company or operation?y What are the "out-dated" or inefficient equipment?y What are the bad customer experience?y What are the repeated operation failure?y What are the escalated cost components?

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    S.W.O.T.External Factors

    Opportunities :In the area of Opportunities, it is an external factor. Whendealing with external factors, we have to be objectives. Keep

    focus on external factors that has an influence to the marketand our sales opportunity and those are not within our control. We may use the following guidelines to help us to generate thelist of opportunities

    y

    Political or policy changes that may encourage developmenty Economic situation that encourage spendingy Societal stability that may encourage harmony (more

    spending)y Technological advancement that can accelerate our

    operation

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    S.W.O.T.External Factors

    Threats:In the area of Threats, it is another external factor we must deal withrealistically and that the information has great impact to our business.

    Keep focus on external factors that has an influence to the market andour sales opportunity and those are not within our control. We may usethe following guidelines to help us to generate the list of opportunities:-

    y Any new entrance to our industry?y

    Any form of substitutions or alternativesy What are some of the political changes that influence the economy?y Policy imposed that cost more in the long runy Economic downturn in our own targeted markety Societal instability y Obsolete technology that hinder speed to market

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    Strengths:ISO 9001-2000Strong security systemHigh quality productLatest mechanized machineryTremendous market positioningHighly qualified and skilledManagementHighly motivated workforceAdequate financial resourcesEquipped with MIS systemOwn power generation plant

    WeaknessesHigh cost of productionCentralized decision makingWeak image in the international marketSmall international market shareLess promotional activitiesNo hr departmentLack of benefits and rewards for theemployees

    OpportunitiesO rganization can expand product linesO rganization can capture new marketsegments around the worldO rganization can reduce the cost by proper utilization of resourcesO rganization can hire more well-educatedand experienced person

    ThreatsNew entry of competitorsBuyer needs demands changesPolitical instabilityChange of government policiesGlobally economic instability

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    SO Strategies: U se strengths to take advantage of opportunities

    y U se latest mechanized machinery organization to expandproduct lines.

    y U se tremendous market positioning to capture new marketsegment around the world.

    y U se highly qualified and skilled management organization

    to reduce the cost of production

    Strengths:High quality productLatest mechanized machineryTremendous market positioningHighly qualified and skilledmanagementHighly motivated workforceAdequate financial resourcesEquipped with MIS system

    OpportunitiesOrganization can expand product linesOrganization can capture new marketsegments around the worldOrganization can reduce the cost by properutilization of resourcesOrganization can hire more well-educatedand experienced person

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    WO Strategies: Overcome weaknesses by taking advantage of opportunities

    y U se reduce the cost by proper utilization of resources toovercome the high cost of productiony U se organization expansion of products lines to overcome the

    small international market share.y U se new hiring of more well-educated and experienced persons

    to easily overcome its lack of promotional activities in themarket.

    WeaknessesHigh cost of productionCentralized decision makingWeak image in the internationalmarketSmall international market shareLess promotional activitiesLack of benefits and rewards for theemployees

    OpportunitiesOrganization can expand product linesOrganization can capture new marketsegments around the worldOrganization can reduce the cost by properutilization of resourcesOrganization can hire more well-educatedand experienced person

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    ST Strategies U se strengths to avoid threats

    y U se organization s sufficient financial recourses to avoid theconsequences of political instability by expanding its business to otherareas where political instability is minimal.

    y U se Organization s high quality products and competitive advantageorganization to reduce the threat of the new entry of competitors.

    y U se highly educated staff to keep a very strong eye on any change inbuyer sdemand or bargaining power.

    Strengths:High quality productLatest mechanized machineryTremendous market positioningHighly qualified and skilledmanagementHighly motivated workforceSufficient financial resourcesEquipped with MIS system

    ThreatsNew entry of competitorsBuyer needs demands changesPolitical instabilityChange of government policiesGlobally economic instability

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    WT Strategies M inimize weaknesses and avoid threats

    y Overcome on less promotional activities weakness to have more loyalcustomers to reduce the threat of new entry of competitors.y Overcome on lack of benefits and rewards for the employees to have

    more happy employees which will ultimately work for the bettermentof the organization to keep a strong eye on buyers needs and demandschange patterns.

    y

    Have a greater market share to reduce the threat of globally economicinstability.

    WeaknessesHigh cost of productionCentralized decision makingWeak image in the internationalmarketSmall international market shareLess promotional activitiesLack of benefits and rewards for theemployees

    ThreatsNew entry of competitorsBuyer needs demands changesPolitical instabilityChange of government policiesGlobally economic instability

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    y Company should have proper planning to purchase raw material as it is purchased sometimes without planning in every season that is the causeof high level of inventory and blockage of funds and ultimately affects

    the liquidity.y Expanding product lines that will give more variety to people of

    country could extend local marketing and ultimately sales would beincreased. There should be more staff in local marketing department toenhance the sales figure and to capture wide area of local market.

    y In processing department there is a need of skilled workers. There arecertain departments of processing in which employees have beenworking since long but there efficiency is not improved andunsatisfactory results come out sometimes. The skilled labor will notonly improve the efficiency but also will improve effectiveness.

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    y The Company should arrange training and orientation programs for itsemployees on regular basis so that they can equip themselves with thelatest developments in the field of finance and accounts and operations

    y Employees work overload should be controlled properly so that theemployees are motivated.

    y There should be more female artists and designers in design departmentas females have naturally more esthetical qualities than males. They willreally improve the quality of designs and will introduce more innovativedesigns.

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    Q& A