8/10/2019 HRM_Ch6

1/19

S.W.O.T. Analysis

8/10/2019 HRM_Ch6

2/19

8/10/2019 HRM_Ch6

3/19

The purpose of SWOT Analysis It is an easy-to-use tool for developing an

overview of a companys strategic situation

It forms a basis for matching your companysstrategy to its situation

8/10/2019 HRM_Ch6

4/19

S.W.O.T. Analysis

Strengths

Opportunities

Weakness

Threats

Factors Internalto Organization

Factors Externalto Organization

8/10/2019 HRM_Ch6

5/19

SWOT: Internal Factors

StrengthsPositive tangible and intangible attributes, internalto an organization. They are within theorganizations control.

WeaknessFactors that are within an organizations controlthat detract from its ability to attain the core goal.Which areas might the organization improve?

8/10/2019 HRM_Ch6

6/19

SWOT-StrengthA strength could be:

Your specialist marketing expertise.

A new, innovative product or service. Location of your business. Quality processes and procedures.

Any other aspect of your business that addsvalue to your product or service.

8/10/2019 HRM_Ch6

7/19

SWOT-Weakness

A weakness could be:

Lack of marketing expertise.

Undifferentiated products or services (i.e. inrelation to your competitors).

Location of your business.

Poor quality goods or services. Damaged reputation.

8/10/2019 HRM_Ch6

8/19

SWOT: External Factors

Opportunities External attractive factors that represent the reason for an

organization to exist and develop. What opportunities existin the environment, which will propel the organization?

Identify them by their time frames

Threats External factors, beyond an organizations control, which

could place the organization mission or operation at risk.The organization may benefit by having contingency plansto address them if they should occur.

Classify them by their seriousness and probability ofoccurrence.

8/10/2019 HRM_Ch6

9/19

SWOT-Opportunities

An opportunity could be:

A developing market such as the Internet. Mergers, joint ventures or strategic alliances. Moving into new market segments that offer

improved profits.

A new international market.

A market vacated by an effective competitor.

8/10/2019 HRM_Ch6

10/19

SWOT-Threat

A threat could be: A new competitor in your home market.

Price wars with competitors. A competitor has a new, innovative product or

service.

Competitors have superior access to channelsof distribution. Taxation is introduced on your product or

service.

8/10/2019 HRM_Ch6

11/19

Simple Rules for SWOT Analysis Be realistic about the strengths and weaknesses

of your organization or group.

Distinguish between where your organization istoday, and where it could be in the future Be specific: Avoid gray areas. Always analyze in relation to your core mission.

Keep your SWOT short and simple. Avoidcomplexity and over analysis

Empower SWOT with a logical conceptualframework.

8/10/2019 HRM_Ch6

12/19

SWOT Analysis Examples

Example 1 Wal-Mart SWOT Analysis. Strengths - Wal-Mart is a powerful

retail brand. It has a reputation for value for money,convenience and a wide range of products all in one store.Weaknesses - Wal-Mart is the World's largest grocery retailerand control of its empire, despite its IT advantages, couldleave it weak in some areas due to the huge span of control.Opportunities - To take over, merge with, or form strategicalliances with other global retailers, focusing on specific

markets such as Europe or the Greater China Region. Threats -Being number one means that you are the target ofcompetition, locally and globally.

8/10/2019 HRM_Ch6

13/19

SWOT Analysis: Coca Cola

8/10/2019 HRM_Ch6

14/19

8/10/2019 HRM_Ch6

15/19

8/10/2019 HRM_Ch6

16/19

SWOT Analysis: NokiaStrengths:

Nokia world's Largest producer and manufacturer of cell phones aswell as has the largest distribution network around the world.

It is also known for the Creativity, Innovativeness, durability andreliability.

It has very good financial position , higher return on equity(ROE),return on assets(ROA) and net profit margins(NPM).

Nokia leads the global cell phone industry. Nokia dominates the world cellular industry because it has the strong

R&D facilities.

It has diverse work force and advanced technology.

8/10/2019 HRM_Ch6

17/19

SWOT Analysis: Nokia

Weakness: It has declared its profits had dropped by 40% in 2010.

Nokia mobile phone prices are higher as compare to

china mobile phones. Nokia presence in the US cellular industry is very low and

in japan it has very weak handsets.

In india nokia has few service centers and very appallingafter sales service.

In Japan Nokia closed the mobile handsets distributionand also canceled the distribution of E71 handset due tolow market presence.

8/10/2019 HRM_Ch6

18/19

8/10/2019 HRM_Ch6

19/19

SWOT Analysis: Nokia

Threats: Consumers are becoming more complicated in the choice

of handset due to new styles by china mobiles.

Difficult for sellers to differentiate their products andretain loyalty.

Nokia is facing very strong price pressure from china andother mobile producers.

Nokia is losing global market share after the arrival ofseveral Chinese producers. In the Asia/Pacific emerged competitive forces. Apple , RIM and the other sellers have created strong

pressure on Nokia.