SWOT analysis
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This document provides an overview of SWOT analysis for strategic management. It defines SWOT as a tool to understand internal strengths and weaknesses as well as external opportunities and threats. The document outlines the steps to perform a SWOT analysis, including defining key strengths, weaknesses, opportunities, and threats; building a SWOT matrix; quantifying the matrix; discussing implications; and identifying strategic opportunities and threats to address. The overall aim is to apply both quantitative and qualitative SWOT analysis to inform strategic decision making.
SWOT analysis
- 1. Strategic Management SWOT ANALYSIS MANAGEMENT - SWOT ANALYSIS INNO-SMART Barcelona - www.inno-smart.com Silvia Rodriguez-Donaire, Ph.D. silvia.rodriguez-donaire@inno-smart.com INNO-SMART Barcelona CEO @srodriguezd
- 2. INNO-SMART Barcelona - www.inno-smart.com MANAGEMENT - SWOT ANALYSIS INTERNAL EXTERNAL Strengths & Weaknesses Opportunities & Threats CONTENT STEP 3c SWOT Analysis STRATEGIC MANAGEMENT SITUATION ANALYSIS STEP 3c: Situation Analysis
- 3. CONTENT STRATEGIC MANAGEMENT STEP 3c What are SWOT Analysis ANALYSIS objectives? SWOT - MANAGEMENT INNO-SMART Barcelona - www.inno-smart.com Understand how to build the SWOT MATRIX Apply the quantitative and qualitative SWOT Analysis method using a group decision Analyze and discuss the SWOT Analysis results. SWOT Analysis
- 4. CONTENT STRATEGIC MANAGEMENT STEP 3c STEP 3c - SWOT INNO-SMART Barcelona - www.inno-smart.com MANAGEMENT - SWOT ANALYSIS Analysis SWOT Matrix SWOT Analysis SWOT Analysis
- 5. CONTENT STRATEGIC MANAGEMENT STEP 3c STEP 3c - SWOT INNO-SMART Barcelona - www.inno-smart.com MANAGEMENT - SWOT ANALYSIS Analysis SWOT Matrix SWOT Analysis SWOT Analysis
- 6. CONTENT STRATEGIC MANAGEMENT STEP 3c INNO-SMART Barcelona - www.inno-smart.com MANAGEMENT - SWOT ANALYSIS What’s SWOT? SWOT Analysis
- 7. CONTENT STRATEGIC MANAGEMENT STEP 3c What’s SWOT? INNO-SMART Barcelona - www.inno-smart.com MANAGEMENT - SWOT ANALYSIS It’s a tool for an organization analysis. Planning tool used to understand the Strengths, Weaknesses, Opportunities and Threats involved in a project. SWOT Analysis
- 8. CONTENT STRATEGIC MANAGEMENT STEP 3c What’s SWOT? INNO-SMART Barcelona - www.inno-smart.com MANAGEMENT - SWOT ANALYSIS STRENGTHS: what the company does well compare to its competition. It gives an advantage over others. ● Product line ● Technology ● Cash flow ● Client base ● Industry knowledge ● Patents ● ... SWOT Analysis
- 9. CONTENT STRATEGIC MANAGEMENT STEP 3c What’s SWOT? INNO-SMART Barcelona - www.inno-smart.com MANAGEMENT - SWOT ANALYSIS WEAKNESSES: what the company does not do well compare to its competition. It gives disadvantage over others: ● Lack of capacity ● Inexperience ● Bad service ● ... ● Poor communications SWOT Analysis
- 10. CONTENT STRATEGIC MANAGEMENT STEP 3c INNO-SMART Barcelona - www.inno-smart.com MANAGEMENT - SWOT ANALYSIS What’s SWOT? OPPORTUNITIES: where the company can grow and create additional revenues. ● Growing demand ● Industry growth ● Alliances ● Evolving client needs ● ... SWOT Analysis
- 11. CONTENT STRATEGIC MANAGEMENT STEP 3c What’s SWOT? INNO-SMART Barcelona - www.inno-smart.com MANAGEMENT - SWOT ANALYSIS THREATS: where the company is vulnerable to lost revenue. ● Trade barriers ● Cost reduction ● Environmental regulations ● New competitors ● Weak entry barriers ● High exit barriers ● ... SWOT Analysis
- 12. It’s time for your SWOT Matrix INNO-SMART Barcelona - www.inno-smart.com MANAGEMENT - SWOT ANALYSIS STEP 3c: Situation Analysis - SWOT Matrix STEP 1: Rank the opportunities, strengths, weaknesses and threats of your situation analysis. STEP 2: Choose the main opportunities, strengths, weaknesses and threats. Not more than 5. STEP 3: Build the SWOT matrix completing the following template. CONTENT STEP 3c SWOT Analysis
- 13. CONTENT STRATEGIC MANAGEMENT STEP 3c STEP 1c - SWOT Analysis SWOT Matrix SWOT Analysis ANALYSIS SWOT Analysis SWOT - MANAGEMENT INNO-SMART Barcelona - www.inno-smart.com
- 14. CONTENT STRATEGIC MANAGEMENT STEP 3c INNO-SMART Barcelona - www.inno-smart.com MANAGEMENT - SWOT ANALYSIS Situation Analysis technique: SWOT Analysis SWOT Analysis
- 15. CONTENT STRATEGIC MANAGEMENT STEP 3c STEPS for SWOT ANALYSIS Analysis SWOT - MANAGEMENT INNO-SMART Barcelona - www.inno-smart.com What has been done? STEP 1 & 2: Rank and select 5 opportunities, strengths, weaknesses and threats that your business face. STEP 3: Build the matrix with the previous selection. SWOT Analysis
- 16. CONTENT STRATEGIC MANAGEMENT STEP 3c STEPS for SWOT ANALYSIS Analysis SWOT - MANAGEMENT INNO-SMART Barcelona - www.inno-smart.com What’s NEXT? STEP 4: Individually, each member of the group will quantify from “10”(+) to “1”(-) each of the factors of your matrix according to the following questions… Top values (10) stand for firm’s benefit point of view. SWOT Analysis
- 17. CONTENT STRATEGIC MANAGEMENT STEP 3c STEP 4 for SWOT ANALYSIS Analysis SWOT - MANAGEMENT INNO-SMART Barcelona - www.inno-smart.com Quantify from “10”(+) to “1”(-) each of the factors Q1: How much does every strength take advantage of each opportunity? Q2: How much does every strength allow the firm to reduce or minimize the most likely threat? Q3: If the weakness are not overcome, would the firm take advantage of each opportunity? Q4: If the weakness are not overcome, would the firm reduce each threat? STRENGTH WEAKNESS OPPORTUNITIES THREATS SWOT Analysis
- 18. Q1: How much does every strength take advantage of each opportunity? Q2: How much does every strength allow the firm to reduce or minimize the most likely threat? ANALYSIS Q3: If the weakness are not overcome, would the SWOT firm take advantage of each opportunity? - MANAGEMENT INNO-SMART Barcelona - www.inno-smart.com Q4: If the weakness are not overcome, would the firm reduce each threat? STRENGTH WEAKNESS OPPORTUNITIES THREATS O1 O2 O3 O4 O5 T1 T2 T3 T4 T5 S1 S2 S3 W1 W2 W3 5 4 8 8 5 7 5 4 7 2 6 8 1 5 9 9 4 5 4 5 1 5 4 3 3 8 2 5 55 33 34 34 45 52 20 20 54 40 50 44 30 46 28 36 CONTENT STEP 3c SWOT Analysis
- 19. It’s time for SWOT analysis INNO-SMART Barcelona - www.inno-smart.com MANAGEMENT - SWOT ANALYSIS STEP 4: Situation Analysis - SWOT Analysis ● Quantify individually the SWOT matrix CONTENT STEP 3c SWOT Analysis
- 20. CONTENT STRATEGIC MANAGEMENT STEP 3c STEPS for SWOT ANALYSIS Analysis SWOT - MANAGEMENT INNO-SMART Barcelona - www.inno-smart.com STEP 5: Meet your group and agree on the final score of each square matrix quadrant. STEP 6: ● Detect the strengths and opportunities that have bigger scores. ● Detect the weaknesses and threats that have smaller scores. SWOT Analysis
- 21. CONTENT STRATEGIC MANAGEMENT STEP 3c STEP 6 for SWOT ANALYSIS Analysis SWOT - MANAGEMENT INNO-SMART Barcelona - www.inno-smart.com ● Opportunities with higher scores are the ones that we can take advantage of. ● Strengths with higher scores are the ones are that we must take advantage of. ● Weakness with lower scores are the ones that the firm has to invest to reduce or mitigate. ● Threads with lower scores are the ones that the firm has to identify and protect against. SWOT Analysis
- 22. SWOT Analysis example INNO-SMART Barcelona - www.inno-smart.com MANAGEMENT - SWOT ANALYSIS O1 O2 O3 O4 O5 T1 T2 T3 T4 T5 D1 D2 D3 5 4 8 8 5 7 5 4 7 2 6 8 1 5 9 9 4 5 4 5 1 5 4 3 3 8 2 5 55 33 34 34 45 52 20 20 54 40 50 44 30 46 28 36 Which ones we have to invest to reduce or mitigate Which ones we must take advantage of Which ones we have to identify & protect against Which ones you can take advantage of TOTAL 40 TOTAL 225 S1 S2 S3 CONTENT STEP 3c SWOT Analysis
- 23. It’s time for SWOT analysis INNO-SMART Barcelona - www.inno-smart.com MANAGEMENT - SWOT ANALYSIS STEP 5 - 6: Situation Analysis - SWOT Analysis ● Meet your group and agree on the final score of each matrix quadrant. ● Detect the strengths and opportunities that have bigger scores. ● Detect the weaknesses and threats that have smaller scores. CONTENT STEP 3c SWOT Analysis
- 24. CONTENT STRATEGIC MANAGEMENT STEP 3c STEP 7 for SWOT ANALYSIS Analysis SWOT - MANAGEMENT INNO-SMART Barcelona - www.inno-smart.com STEP 7: Assess in which quadrant state you are Cuadrante MAXI-MAXI (F-O): SUCCESS Reinforce strengths to get the opportunities Cuadrante MAXI-MINI (F-A): ILUSION Reduce threats effects Cuadrante MINI-MAXI (D-O): DECLINATION Reduce weakness to get the opportunities Cuadrante MINI-MINI (D-A): VULNERABILITY Reduce threats and weakness. BAD situation. STRENGTH WEAKNESS OPPORTUNITIES THREATS SWOT Analysis
- 25. SWOT Analysis example CONTENT STEP 3c ANALYSIS 40 SWOT Quadrant MAXI-MAXI (F-O): - MANAGEMENT SUCCESS 19,55% INNO-SMART Barcelona - www.inno-smart.com Quadrant MAXI-MINI (F-A): ILUSION 17,77% Quadrans MINI-MAXI (D-O): DECLINATION 12,44% Quadrant MINI-MINI (D-A): VULNERABILITY 14,22% STRENGTH WEAKNESS OPPORTUNITIES THREATS = 17,7% 225 TOTAL MATRIX = 225 TOTAL Q Max-Mini = 40 SWOT Analysis
- 26. CONTENT STRATEGIC MANAGEMENT STEP 3c STEP 8 for SWOT ANALYSIS Analysis SWOT - MANAGEMENT INNO-SMART Barcelona - www.inno-smart.com STEP 8: Once detected your quadrant and the main opportunities, strengths, threats and weaknesses to be considered, discuss in group: ● Opportunities: how could you take advantage of? ● Threats: how would you protect against? ● Strengths: how could you take advantage of? ● Weaknesses: how would you reduce them? SWOT Analysis
- 27. It’s time for SWOT CONCLUSIONS INNO-SMART Barcelona - www.inno-smart.com MANAGEMENT - SWOT ANALYSIS STEP 7 - 8: Situation Analysis - SWOT Analysis ● Detect in which quadrant you are ● Discuss in group how you could take advantage of the main opportunities and strengths. ● Discuss in group how you would protect against threats and mitigate weaknesses. CONTENT STEP 3c SWOT Analysis
- 28. CONTENT STRATEGIC MANAGEMENT STEP 3c What might be learn? INNO-SMART Barcelona - www.inno-smart.com MANAGEMENT - SWOT ANALYSIS Understand how to build the SWOT MATRIX Apply the quantitative and qualitative SWOT Analysis method as a decision group. Analyze and discuss the SWOT Analysis results. SWOT Analysis
- 29. STRATEGIC MANAGEMENT SITUATION ANALYSIS INNO-SMART Barcelona - www.inno-smart.com MANAGEMENT - SWOT ANALYSIS STEP 3c: Situation Analysis INTERNAL EXTERNAL Strengths & Weaknesses Opportunities & Threats CONTENT STEP 3c SWOT Analysis
- 30. Strategic Management SWOT ANALYSIS MANAGEMENT - SWOT ANALYSIS INNO-SMART Barcelona - www.inno-smart.com Silvia Rodriguez-Donaire, Ph.D. silvia.rodriguez-donaire@inno-smart.com INNO-SMART Barcelona CEO @srodriguezd