What Is A Swot Analysis SM
What Is A Swot Analysis SM
What Is A Swot Analysis SM
ONE?
SWOT stands for: Strength, Weakness, Opportunity, Threat. A SWOT analysis guides you to
identify your organizations strengths and weaknesses (S-W), as well as broader opportunities
and threats (O-T). Developing a fuller awareness of the situation helps with both strategic
planning and decision-making.
The SWOT method was originally developed for business and industry, but it is equally
useful in the work of community health and development, education, and even for personal
growth.
SWOT is not the only assessment technique you can use. Compare it with to determine if this
is the right approach for your situation. The strengths of this method are its simplicity and
application to a variety of levels of operation.
Adjust and refine plans mid-course. A new opportunity might open wider avenues,
while a new threat could close a path that once existed.
SWOT also offers a simple way of communicating about your initiative or program and an
excellent way to organize information you've gathered from studies or surveys.
Internal
External
Strengths
Weaknesses
Opportunities
Threats
If a looser structure helps you brainstorm, you can group positives and negatives to think broadly
about your organization and its external environment.
Positives
Negatives
Strengths
Weaknesses
Assets
Limitations
Resources
Restrictions
Opportunities
Threats
Prospects
Challenges
Below is a third option for structuring your SWOT analysis, which may be appropriate for a larger
initiative that requires detailed planning. This "TOWS Matrix" is adapted from Fred David's Strategic
Managementtext.
STRENGTHS
WEAKNESSES
1.
1.
2.
2.
3.
3.
4.
4.
OPPORTUNITIES
1.
2.
opportunities
of opportunities
3.
1.
1.
4.
2.
2.
THREATS
1.
2.
1.
1.
3.
2.
2.
4.
David gives an example for Campbell Soup Company that stresses financial goals, but it also
illustrates how you can pair the items within a SWOT grid to develop strategies. (This version of the
chart is abbreviated.)
STRENGTHS
WEAKNESSES
OPPORTUNITIES
Western European
unification
Strategies
Rising health
consciousness in
selecting foods
Opportunity-Weakness (OW)
THREATS
biodegradable
This example also illustrates how threats can become opportunities (and vice versa). The
limitation of tin cans (which aren't biodegradable) creates an opportunity for leadership in
developing biodegradable containers. There are several formats you can use to do a SWOT
analysis, including a basic SWOT formthat you can use to prompt analysis, but whatever
format you use, don't be surprised if your strengths and weaknesses don't precisely match up
to your opportunities and threats. You might need to refine, or you might need to simply look
at the facts longer, or from a different angle. Your chart, list or table will certainly reveal
patterns.
L I S T I N G YO U R I N T E R N A L FAC T O R S : S T R E N G T H S AN D
WEAKNESSES (S, W)
Internal factors include your resources and experiences. General areas to consider:
Past experiences - building blocks for learning and success, your reputation in the
community
Don't be too modest when listing your strengths. If you're having difficulty naming them,
start by simply listing your characteristics (e.g., we're small, we're connected to the
neighborhood). Some of these will probably be strengths.
Although the strengths and weakness of your organization are your internal qualities, don't
overlook the perspective of people outside your group. Identify strengths and weaknesses
from both your own point of view and that of others, including those you serve or deal with.
Do others see problems--or assets--that you don't?
How do you get information about how outsiders perceive your strengths and weaknesses?
You may know already if you've listened to those you serve. If not, this might be the time to
gather that type of information. See related sections for ideas on conducting focus groups,
user surveys, and listening sessions.
L I S T I N G E X T E R N A L FAC T O R S : O P P O RTU N I T I E S AN D T H R E ATS ( O ,
T)
Cast a wide net for the external part of the assessment. No organization, group, program, or
neighborhood is immune to outside events and forces. Consider your connectedness, for
better and worse, as you compile this part of your SWOT list
Forces and facts that your group does not control include:
Demographics - changes in the age, race, gender, culture of those you serve or in your
area
The physical environment (Is your building in a growing part of town? Is the bus
company cutting routes?)
Legislation (Do new federal requirements make your job harder...or easier?)
Designate a leader or group facilitator who has good listening and group process
skills, and who can keep things moving and on track.
Designate a recorder to back up the leader if your group is large. Use newsprint on a
flip chart or a large board to record the analysis and discussion points. You can record
later in a more polished fashion to share with stakeholders and to update.
Introduce the SWOT method and its purpose in your organization. This can be as
simple as asking, "Where are we, where can we go?" If you have time, you could run
through a quick example based on a shared experience or well-known public issue.
Depending on the nature of your group and the time available, let all participants
introduce themselves. Then divide your stakeholders into smaller groups. If your
retreat or meeting draws several groups of stakeholders together, make sure you mix
the small groups to get a range of perspectives, and give them a chance to introduce
themselves.
o
The size of these depends on the size of your entire group breakout groups
can range from three to ten. If the size gets much larger, some members may
not participate.
Have each group designate a recorder, and provide each with newsprint or dry -erase
board. Direct them to create a SWOT analysis in the format you choose-a chart,
columns, a matrix, or even a page for each quality.
o
Give the groups 20-30 minutes to brainstorm and fill out their own strengths,
weakness, opportunities and threats chart for your program, initiative or effort.
Encourage them not to rule out any ideas at this stage, or the next.
Remind groups that the way to have a good idea is to have lots of ideas.
Refinement can come later. In this way, the SWOT analysis also supports
valuable discussion within your group or organization as you honestly assess.
Once a list has been generated, it helps to refine it to the best 10 or fewer
points so that the analysis can be truly helpful.
Reconvene the group at the agreed-upon time to share results. Gather information
from the groups, recording on the flip-chart or board. Collect and organize the
differing groups' ideas and perceptions.
o
Or you can begin by calling for the top priorities in each category -the
strongest strength, most dangerous weakness, biggest opportunity, worst
threat--and continue to work across each category.
Ask one group at a time to report ("Group A, what do you see as strengths?")
You can vary which group begins the report so a certain group isn't always left
"bringing up the end" and repeating points made by others. ("Group B, let's
start with you for weaknesses.")
Or, you can open the floor to all groups ("What strengths have you noted?")
for each category until all have contributed what they think is needed.
Discuss and record the results. Depending on your time frame and purpose:
Come to some consensus about the most important items in each category
More ideas on conducting successful meetings can be found in Community Tool Box
resources on conducting public forums and listening sessions, conducting focus groups,
and organizing a retreat.
As you consider your analysis, be open to the possibilities that exist within a weakness or
threat. Likewise, recognize that an opportunity can become a threat if everyone else sees the
opportunity and plans to take advantage of it as well, thereby increasing your competition.
Finally, during your assessment and planning, you might keep an image in mind to help you
make the most of a SWOT analysis: Look for a "stretch," not just a "fit." As Radha
Balamuralikrishna and John C. Dugger of Iowa State University point out, SWOT usually
reflects your current position or situation. Therefore one drawback is that it might not
encourage openness to new possibilities. You can use SWOT to justify a course that has
already been decided upon, but if your goal is to grow or improve, you will want to keep this
in mind.
I N S UMMARY
A realistic recognition of the weaknesses and threats that exist for your effort is the first step
to countering them with a robust set of strategies that build upon strengths and opportunities.
A SWOT analysis identifies your strengths, weaknesses, opportunities and threats to assist
you in making strategic plans and decisions.
D EV ELOPIN G A N D US IN G A S WOT A NA LY S IS
___Your group or organization has determined, based on its strengths and
___You have designed your retreat or meeting as well as the form of the
SWOT analysis you will conduct
___You have involved a diverse group of stakeholders in creating the
SWOT assessment
___You conducted the SWOT analysis meeting and generated a list of
internal strengths and weaknesses and external opportunities and threats
___You considered the SWOT factors from others' points of views as well as
your own
___You have used your SWOT analysis as a tool to discover or confirm
areas for action and improvement
___You have used your SWOT analysis to develop strategies for change
C ON D UC T IN G A S WOT A NA LY S IS
___ At your meeting or retreat, designate a leader or group facilitator
Top priority order for each category -the strongest strength, most
dangerous weakness, biggest opportunity, worst threat
Internal
Positives
Negatives
Strengths
Weaknesses
Human resources
Physical resources
advantages, in terms of
Financial resources
finances?
funding?
Activities and
processes
poorly done?
Opportunities
Threats
Future trends - in
Past experiences
External
culture
The economy
Funding sources
Is a social change or
programs?
demographic pattern
Is a social change or
to your goal?
available?
funder changing?
new promise?
Is changing technology
(foundations,
donors,
legislatures)
Demographics
The physical
environment
Legislation
Local, national, or
international
events
threatening your
effectiveness?
Threats: elements in the environment that could cause trouble for the business or
project.
Identification of SWOTs is important because they can inform later steps in planning to
achieve the objective.
First, the decision makers should consider whether the objective is attainable, given the
SWOTs. If the objective is not attainable a different objective must be selected and the
process repeated.
Users of SWOT analysis need to ask and answer questions that generate meaningful
information for each category (strengths, weaknesses, opportunities, and threats) to make
the analysis useful and find their competitive advantage.
Use
The usefulness of SWOT analysis is not limited to profit-seeking organizations.
SWOT analysis may be used in any decision-making situation when a desired endstate (objective) is defined. Examples include: non-profit organizations,
governmental units, and individuals. SWOT analysis may also be used in pre-crisis
planning and preventivecrisis management. SWOT analysis may also be used in
creating a recommendation during a viability study/survey.
Strategy building
SWOT analysis can be used effectively to build organization or personal
strategy. Steps necessary to execute strategy-oriented analysis involve: identification
of internal and external factors (using popular 2x2 matrix), selection and evaluation
of the most important factors and identification of relations existing between internal
and external features.[3]
For instance: strong relations between strengths and opportunities can suggest
good condition of the company and allow using aggressive strategy. On the other
hand strong interaction between weaknesses and threats could be analyzed as
potential warning and advise for using defensive strategy.[citation needed]
Corporate planning
As part of the development of strategies and plans to enable the organization to
achieve its objectives, that organization will use a systematic/rigorous process known
as corporate planning. SWOT alongside PEST/PESTLE can be used as a basis for the
analysis of business and environmental factors.
Environmental scanning
Analysis of existing strategies, this should determine relevance from the results
of an internal/external appraisal. This may include gap analysis which will look at
environmental factors
Monitoring results mapping against plans, taking corrective action which may
mean amending objectives/strategies.
Marketing
Main article: Marketing management
In many competitor analyses, marketers build detailed profiles of each competitor
in the market, focusing especially on their relative competitive strengths and
weaknesses using SWOT analysis. Marketing managers will examine each
competitor's cost structure, sources of profits, resources and competencies,
competitive positioning and product differentiation, degree of vertical integration,
historical responses to industry developments, and other factors.
Marketing management often finds it necessary to invest in research to collect the
data required to perform accurate marketing analysis. Accordingly, management
often conducts market research (alternately marketing research) to obtain this
information. Marketers employ a variety of techniques to conduct market
research, but some of the more common include:
Marketing managers may also design and oversee various environmental scanning
and competitive intelligence processes to help identify trends and inform the
company's marketing analysis.
Below is an example SWOT analysis of a market position of a small
management consultancy with specialism in HRM.
Strengths
Weaknesses
Opportunities
Reputation in
marketplace
Shortage of
consultants at
operating level
rather than partner
level
Well established
position with a
well defined
market niche
Expertise at
partner level in
HRM
consultancy
Threats
Large
consultancies
operating at a
minor level
Other small
consultancies
looking to invade
the marketplace
Human resources
Finances
Physical resources
Experiences including what has worked or has not worked in the past
Funding sources
Current events
Societal oppression
Benefits
The SWOT analysis in Social Work practice framework is beneficial because
it helps organizations decide whether or not an objective is obtainable and
therefore enables organizations to set achievable goals, objectives, and steps
to further the social change or community development effort.[ It enables
organizers to take visions and produce practical and efficient outcomes in
order to effect long-lasting change, and it helps organizations gather
meaningful information in order to maximize their potential.[Completing a
SWOT analysis is a useful process regarding the consideration of key
organizational priorities, such as gender and cultural diversity, and
fundraising objectives.
Limitations
Critiques include the misuse of the SWOT analysis as a technique that can be
quickly designed without critical thought leading to a misrepresentation of
Strengths, Weaknesses, Opportunities and Threats within an organization's
internal and external surroundings. Another limitation includes the
development of a SWOT analysis simply to defend previously decided goals
and objectives. This misuse leads to limitations on brainstorming possibilities
and "real" identification of barriers. This misuse also places the
organizations interest above the well being of the community. Further, a
SWOT analysis should be developed as a collaborative with a variety of
contributions made by participants including community members. The
design of a SWOT analysis by one or two community workers is limiting to
the realities of the forces specifically external factors, and devalues the
possible contributions of community members.
The company was established in 1935 as a locomotive manufacturing unit and later
expanded its operations to commercial vehicle sector in 1954 after forming a joint
venture with Daimler-Benz AG of Germany.
Ratan N Tata is the chairman of Tata Sons, the Tata promoter company.
The company is the world's fourth largest truck manufacturer, and the world's second
largest bus manufacturer.
The company's 24,000 employees are guided by the vision to be "best in the manner
in which we operate, best in the products we deliver, and best in our value system
and ethics.
Tata Motors is also expanding its international footprint, established through exports
since 1961.
Following a strategic alliance with Fiat in 2005, it has set up an industrial joint
venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both
Fiat and Tata cars and Fiat powertrains. The company is establishing a new plant at
Sanand (Gujarat).
The companys dealership, sales, services and spare parts network comprises over
3500 touch points.
Tata has been actively acquiring and joint venturing with other companies during the
past five years. The purchase of Daewoo Commercial Vehicles (2004), a minority
investment in Spanish bus and coach manufacturer Hispano Carrocera (2005), an
alliance with Fiat, a joint venture with Brazilian bus and coach manufacturer
Marcopolo and with Thailands Thonburi Automotive Assembly Plant Company
(2006).
2008 heralded two major events: the purchase of Britains icons Jaguar Land Rover
and the launch of the Tata Nano, the Peoples Car for 100,000 rupees or
approximately $2,100. Seating 4, the Nano is a mere 10 feet long and has a 4 gallon
fuel tank.
There is a trending rise in diesel fuel costs which will hurt Tatas line of products
Jaguar Land Rover, a business comprising the two iconic British brands that was
acquired in 2008.
In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a Spanish bus and
coach.
Tata Motors has expanded its production and assembly operations to several other
countries including South Korea, Thailand, South Africa and Argentina and is
planning to set up plants in Turkey, Indonesia and Eastern Europe.
Tata Motors continued its product line expansion through the introduction of new
products into the market range of buses (Starbus & Globus) as well as trucks (Novus).
Though Tata is present in many countries it has only managed to create a large
consumer base in the Indian Subcontinent namely India, Bangladesh, Bhutan, Sri
Lanka and Nepal and has a growing consumer base in Italy, Spain and South Africa
Tata Sumo/Spacio
Tata Safari
Tata Indica
Tata Vista
Tata Indigo
Tata Manza
Tata Winger
Tata Magic
Tata Nano
Tata Xenon XT
Tata Aria
Commercial vehicles
Tata Ace
Tata 709 Ex
Tata Starbus (Branded Buses for city,inter city,school bus and standard passenger
transportation)
Tata Marcopolo Bus (Low Floor, Semi Low Floor buses for Mass Rapid Transit
and also standard passenger transportation Buses)
Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo)
Military Vehicles
Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions
Company Profile
Tata Motors Limited is India's largest automobile company, with consolidated
revenues of INR 2,62,796 crores (USD 42.04 billion) in 2014-15. It is the leader in
commercial vehicles in each segment, and among the top in passenger vehicles with winning
products in the compact, midsize car and utility vehicle segments.
The Tata Motors Group's over 60,000 employees are guided by the mission "to be passionate
in anticipating and providing the best vehicles and experiences that excite our customers
globally."
Established in 1945, Tata Motors' presence cuts across the length and breadth of India.
Over 8 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The
company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and
Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an
industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce
both Fiat and Tata cars and Fiat powertrains. The company's dealership, sales, services and
spare parts network comprises over 6,600 touch points, across the world.
Tata Motors, also listed in the New York Stock Exchange (September 2004), has
emerged as an international automobile company. Through subsidiaries and associate
companies, Tata Motors has operations in the UK, South Korea, Thailand, South Africa and
Indonesia. Among them is Jaguar Land Rover, acquired in 2008. In 2004, it acquired the
Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The
rechristened Tata Daewoo Commercial Vehicles Company has launched several new products
in the Korean market, while also exporting these products to several international markets.
Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata
Daewoo. In 2006, Tata Motors formed a 51:49 joint venture with the Brazil-based,
Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built
buses and coaches for India - the plant is located in Dharwad. In 2006, Tata Motors entered
into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to
manufacture and market the company's pickup vehicles in Thailand, and entered the market
in 2008. Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture with Tata Africa
Holding (Pty) Ltd. set up in 2011, has an assembly plant in Rosslyn, north of Pretoria. The
plant can assemble, semi knocked down (SKD) kits, light, medium and heavy commercial
vehicles ranging from 4 tonnes to 50 tonnes.
Tata Motors is also expanding its international footprint, established through exports
since 1961. The company's commercial and passenger vehicles are already being marketed in
several countries in Europe, Africa, the Middle East, South East Asia, South Asia, South
America, Australia, CIS and Russia. It has franchisee/joint venture assembly operations in
Bangladesh, Ukraine, and Senegal.
The foundation of the company's growth over the last 70 years is a deep
understanding of economic stimuli and customer needs, and the ability to translate them into
customer-desired offerings through leading edge R&D. With over 4,500 engineers, scientists
and technicians the company's Engineering Research Centre, established in 1966, has enabled
pioneering technologies and products. The company today has R&D centres in Pune,
Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Italy, Spain, and the UK.
It was Tata Motors, which launched the first indigenously developed Light
Commercial Vehicle in 1986. In 2005, Tata Motors created a new segment by launching the
Tata Ace, India's first indigenously developed mini-truck. In 2009, the company launched its
globally benchmarked Prima range of trucks and in 2012 the Ultra range of international
standard light commercial vehicles. In their power, speed, carrying capacity, operating
economy and trims, they will introduce new benchmarks in India and match the best in the
world in performance at a lower life-cycle cost.
Making strides in the Commercial Vehicle Business, in March 2014, Tata Motors also
took the lead to bring a world renowned motorsport to India, with the T1 Prima Truck Racing
Championship. This unique initiative witnessed over 45,000 spectators in 2015 at the Buddh
International Circuit. This will be an annual property, edged on motorsport calendars globally
and Tata Motors continues to promote its flagship brand, Prima, through this initiative.
Tata Motors also introduced India's first Sports Utility Vehicle in 1991 and, in 1998,
the Tata Indica, India's first fully indigenous passenger car.
In January 2008, Tata Motors unveiled the world famous, the Tata Nano and
subsequently launched, as planned, in India in March 2009, Since its inception, it was
developed to meet the needs of an attractive and affordable entry level car. The Nano has
evolved over time, with the needs of its customers, to become a feature-rich compact
hatchback. The Company has introduced the new generation range called the GenX Nano in
May 2015.
In July 2014, Tata Motors expanded its footprint in the petrol market, with the launch
of its indigenously developed and globally benchmarked Revotron 1.2T engine, India's First
1.2 Litre MPFi Turbocharged Petrol Engine and the first from the new generation Revotron
engine series.
This was followed by the launch of Tata Zest in August 2014, a stylish compact sedan
which comes with new design language, best-in-class performance with unparalleled driving
pleasure. Bringing its Horizonext strategy at play, the Company introduced its sporty,
premium hatchback, Tata Bolt in January 2015. The Zest and Bolt have largely led the
recovery for the passenger vehicle business and continue to receive good response from
customers.
Tata Motors is equally focussed on environment-friendly technologies in emissions
and alternative fuels. It has developed electric and hybrid vehicles both for personal and
public transportation. It has also been implementing several environment-friendly
technologies in manufacturing processes, significantly enhancing resource conservation.
Through its subsidiaries, the company is engaged in engineering and automotive solutions,
automotive vehicle components manufacturing and supply chain activities, vehicle financing,
and machine tools and factory automation solutions.
Tata Motors is committed to improving the quality of life of communities by working
on four thrust areas - employability, education, health and environment. The activities touch
the lives of more than a million citizens. The company's support on education and
employability is focused on youth and women. They range from schools to technical
education institutes to actual facilitation of income generation. In health, the company's
intervention is in both preventive and curative health care. The goal of environment
protection is achieved through tree plantation, conserving water and creating new water
bodies and, last but not the least, by introducing appropriate technologies in vehicles and
operations for constantly enhancing environment care.
With the foundation of its rich heritage, Tata Motors today is etching a refulgent
future.