EXAMPLE OF A SWOT ANALYSIS OF A SACCO SOCIETY
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The SWOT analysis of a Sacco society identifies strengths such as loyal membership and accessible credit facilities, while weaknesses include a majority of net borrowers and leadership challenges. Opportunities exist in expanding product offerings and leveraging technology, whereas threats encompass competition and economic challenges. The overall analysis suggests a solid foundation with significant potential for growth amidst various risks.
EXAMPLE OF A SWOT ANALYSIS OF A SACCO SOCIETY
- 1. SWOT ANALYSIS OF A SACCO SOCIETY BY STEPHEN KIRITU MWANGI A CO-OPERATOR
- 2. S-STRENGTH -Loyal membership -Ready market for product and services offered -Favorable interest rates -Credit facilities are accessible and conditions not stringent -Management is accessible and approachable Member recruitment and marketing -Board and member confidence -Strong , transparent and Informed leadership -Established team and team work -Competent , committed and hardworking staff -Experienced management and skilled staff -Good reputation, positive image and brand
- 3. W-WEAKNESSES -Most members are net borrowers and not savers -Savings are not realized out of personal decision but as a result of the minimum set by the general meeting -Leadership through democratic practice and often leaders would want to be loyal to the electorate -Leaders lack entrepreneurship/business skills -Disregard of policies (i.e. credit policy) by management -Pressure and demand from members because of promise during the election period -Increasing poverty levels and inflation forcing members to seek cheap financial support-perpetual borrowers -Members not able to do self-appraisal of projected investments
- 4. O-OPPORTUNITIES -Unsatisfied demand from the members/customers -Amendments to the Co-operative Societies Act, Rules and By-Laws i.e. open up membership, diversity in other products (Front Office Services) -A sound representation in the Apex bodies (corporate image, synergies) -Open agency banking -Advancement and Growth in Technology e.g. mobile banking (MPESA, ZAP) -Aggressive marketing and publicity campaign of products and services -Potential to attract more membership because of its financial stability and good customer service
- 5. O-OPPORTUNITIES CON’T -Salary processing for members -Regulated business environment -A wider and unexploited and untapped market regions -Introduction of new loan products -Innovativeness in product branding -Poor performance of other SACCOs in the region -Opening of branches and service centres to bring services closer to members -Close relations with the employer -Embracing of partnership with other organization and stake holders -Education and training of members
- 6. T-THREATS -Competition from micro-finance institutions and banks -Change of policies and legal framework -Increasing poverty levels and inflation -HIV/AIDS pandemic -Retrenchments and redundancies affect the capital base and membership -Technological changes in the financial and business sector -Ageing membership -High rate of member withdrawal -Lack of awareness ,ignorance and poor patronage among some members -Transfer of SACCO members from their work place
- 7. THANK YOU