3. Priming Activity
1. SWOT stand for ________________.
A. Strengths, Weaknesses, Opportunities, and Treats
B. Strengths, Weaknesses, Opportunities, and Threats
C. Strengths, Weaknesses, Opportunities, and Time
D. Strengths, Weaknesses, Opportunities, and Time-bound
4. 2. It describes what an organization excels at and what
separates it from the competition.
A. Strengths
B. Weaknesses
C. Opportunities
D. None of the above
5. 3. It refers to favorable external factors that could give an
organization a competitive advantage.
A. Strengths
B. Weaknesses
C. Opportunities
D. None of the above
7. SWOT Analysis
SWOT (strengths, weaknesses, opportunities, and threats)
analysis is a framework used to evaluate a company's competitive
position and to develop strategic planning. SWOT analysis assesses
internal and external factors, as well as current and future potential
(Grant, 2020).
A SWOT analysis is designed to facilitate a realistic, fact-based,
data-driven look at the strengths and weaknesses of an organization or
an industry. The organization needs to keep the accuracy of the analysis
by avoiding pre-conceived beliefs or gray areas and instead focusing on
real-life contexts. Companies should use it as a guide and not
necessarily as a prescription.
8. SWOT Analysis
SWOT analysis is a technique for assessing the
performance, competition, risk, and potential of a business, as
well as part of a business such as a product line or division, an
industry, or other entity.
9. Internal Factors: Strengths (S) and
Weaknesses (W)
These are the resources and experiences readily available
to the business proponents. These factors include:
1. financial resources such as money and source of funds for
investment;
2. physical resources such as the company’s location, facilities,
machinery, and equipment;
10. 3. human resources consisting of employees;
4. access to natural resources, trademarks, patents, and
copyrights; and
5. current processes, such as employee programs, sales,
and distribution capabilities, marketing programs, etc.
11. Strengths
describe what an organization excels at and what
separates it from the competition: a strong brand, loyal
customer base, a strong balance sheet, unique technology,
and more
12. Weaknesses
stop an organization from performing at its optimum level.
There are areas where the business needs to improve: lack
of raw materials, personnel attitude, poor location, and lack
of budget for product promotion, among others
13. External Factors: Opportunities (O) and
Threats (T)
These are factors that affect a company, an
organization, an individual, and those outside their control.
These factors include:
1. economic trends such as stock market, economic
performance, and the like;
2. market trends such as new products or technology,
changes in tastes and lifestyle of society;
14. External Factors: Opportunities (O) and
Threats (T)
3. national and local laws and regulations;
4. relationship with suppliers; and
5. competitive threats.
15. Opportunities
refer to favorable external factors that could give an
organization a competitive advantage. Examples include
larger market, company expansion, and new customer
trends, among others.
16. Threats
refer to factors that have the potential to harm an
organization. For example, changes in government policy,
changes in consumer tastes and preferences, inflation, and
recession, among others.
19. Activity: SWOT Analysis
Directions: Identify if the following situations are under
STRENGTHS, WEAKNESSES, OPPORTUNITY, and
THREATS. Write the number of the corresponding market
situation in the SWOT Analysis Matrix.
Business: Barbecue Stand
20. 1. The City Council of LGU in Pasig passed a
new bill requiring small businesses to register
in the Business and Licensing Department of
the City which is costly.
21. 2. More customers are beginning to like the sauces used by the
barbecue business.
22. 3. The carinderia in front of the barbecue
stand added grilled meals in their menu.
23. •4. Customers are asking if they can order
ahead of time by texting the owner.
24. 5. There is a steady supply of meals in the
market.
26. 7. A new building is under construction near
the barbecue stand.
27. 8. Only 2 helpers are attending to the needs of growing
customers.
28. The TOWS Matrix
• TOWS Analysis is an extension of the classic analytics tool,
SWOT Analysis.
• While SWOT analysis, puts the emphasis on
the internal environment (your strengths and weaknesses),
TOWS forces you to look at your external environment first
(your threats and opportunities).
• Doing this allows you to gain a better understanding of the
strategic choices that you face. (Remember that "strategy" is
the art of determining how you'll "win" in business and life.)
29. It helps you ask, and answer, the
following questions:
• How can we make the most of our strengths?
• How do we circumvent our weaknesses?
• How can we capitalize on external opportunities?
• How should we best manage threats?
30. External
Opportunities (O) External Threats (T)
Internal Strengths
(S)
SO
"Maxi-Maxi Strategy"
Strategies that use
strengths to maximize
opportunities.
ST
"Maxi-Mini Strategy"
Strategies that use
strengths to minimize
threats.
Internal
Weaknesses (W)
WO
"Mini-Maxi Strategy"
Strategies that
minimize weaknesses
by taking advantage
of opportunities.
WT
"Mini-Mini Strategy"
Strategies that
minimize weaknesses
and avoid threats.
TOWS Matrix
31. How to Use a TOWS Matrix
Step 1: Do a SWOT Analysis
Step 2: Translate Your Findings Using a TOWS Matrix
Step 3: Link and Assess Your Strategic Options
• Strengths and Opportunities (SO) – How can you use your
strengths to take advantage of these opportunities?
• Strengths and Threats (ST) – how can you take advantage of
your strengths to avoid real and potential threats?
32. • Weaknesses and Opportunities (WO) – how can you use your
opportunities to overcome the weaknesses you are experiencing?
• Weaknesses and Threats (WT) – how can you minimize your
weaknesses and avoid threats?
Step 4: Evaluate Your Strategic Options
35. Internal Factors
External Factors
Strengths
1. Profitability
2. Brand Recognition
3. Global Presence
Weaknesses
1. Profitability
2. Brand Recognition
3. Global Presence
Opportunities
1. New Markets
2. New Products and Service
3. Purchasing Companies
SO
1.
2.
3.
OW
1.
2.
3.
Threats
1. New Entrants
2. PH Market Saturation
3. Changes in Custom favor
ST
1.
2.
3.
WT
1.
2.
3.
36. Internal Factors
External Factors
Strengths
1. Profitability
2. Brand Recognition
3. Global Presence
Weaknesses
1. Profitability
2. Brand Recognition
3. Global Presence
Opportunities
1. New Markets
2. New Products and Service
3. Purchasing Companies
SO
1. Re-invent profits in New
Markets.
2. Use its brand to sell new
products.
3. Expand global presence by
purchasing companies.
OW
1. New Market will balance
distribution
2. Lower prices for new products
3. Purchase companies to survive
Threats
1. New Entrants
2. PH Market Saturation
3. Changes in Custom favor
ST
1. Offer better stakeholder value
2. Ensure a strong foundation
3. Introduce to more people
worldwide.
WT
1. Entry into new countries before
competition
2. Lower prices in Asia
3. Engage the customers with
constant rewards.
#29:Once you've answered these questions, the next step is to match external opportunities and threats with your internal strengths and weaknesses, as illustrated in the matrix below:
