PRESENTED BY

DR. REETA ARORA

ASSISTANT PROFESSOR DEPTT. OF COMMERCE GOVT. P.G.COLLEGE FOR WOMEN KARNAL

SWOT ANALYSIS IS AN ANALYSIS

TECHNIQUE UNDERTAKEN BY BUSINESS FIRMS TO UNDERSTAND THEIR EXTERNAL AND INTERNAL ENVIRONMENT

A SWOT ANALYSIS IS AN EFFECTIVE WAY OF ANALYSING A COMPANYS POTENTIAL BY IDENTIFYING THE STRENGTHS AND WEAKNESSES AND BY EXAMINING THE OPPORTUNITIES AND THREATS, WHICH MAY EFFECT IT.

 S.

STRENGTH WWEAKNESSES OOPPORTUNITIES T.THREATS.

EVERY INDIVIDUAL AND EVERY ORGANISATION POSSESSES SOME STRENGTHS OR CHARACTERISTICS BY WHICH THEY CAN GAIN IMPORTANT ADVANTAGES OVER ITS COMPETITORS

LIKE STRENGTHS, THERE ARE CERTAIN WEAKNESSES IN EVERY INDIVIDUAL OR AN ORGANISATION. IT RESULTS IN SIGNIFICANT DISADVANTAGES FOR A FIRM COMPARSION TO IT COMPETITORS.

THE AVAILABILITY OF OPPORTUNITIES ARE FAVOURABLE CONDITION IN THE ORGANISATIONS ENVIRONMENT . IT ENABLES IT TO CONSOLIDATE AND STRENGTHEN ITS POSITION IN COMPARISON TO ITS COMPETITORS.

EVERY ORGANISATION AND INDIVIDUAL HAS TO GO THROUGH A SERIES OF DIFFICULTIES AND THREATS WAY TO SUCCESS. IT CAUSES DAMAGES TO AND CREATES A RISK FOR THE ORGANISATION.

FIRST STEP: As a first step to Swot analysis a four square sheet is prepared.

 SECOND

STEP: In this stage, characteristics of the problems related to all the four elements are written.

FIRST OF ALL , IDENTIFY AND LIST THE STREGTHS IN A GIVEN SITUATION. THEN IDENTIFY THE WEAKNESSES. IT IS AS IMPORTANT AS STRENGTHS STAGE. THEN GENERATE THE COMPRENHISIVE LIST OF OPPORTUNITIES. THEN IDENTIFY THE THREATS OPERATING IN THE ENVIRONMENT.

 THIRD

STEP: In this stage, characteristics related to internal environment and external environment are described.

 FOURTH

STEP : In the fourth and final stage strength, weaknesses , opportunities and threats are evaluated and strategy for the development of business organization is prepared.

It can be effectively used in the early stages of decision-making. It helps determine the strategy of the business. Use of the external and internal factors of this analysis, help in visualising a complete picture about the future of the business. It helps in facing the competition successfully. Swot analysis is helpful in minimising the weaknesses and the strengths of the business.

It can be used as a motivating tool. It is a method to achieve the mission and objectives of an organization Swot analysis is a technique to study the established work culture in a organization. The Swot analysis can be used to identify the strengths of communication network in an organisation. Swot analysis can be used to remove the weaknesses in the light of the hard competition being faced by in the day to day communication.

Swot analysis can be used to identify threats and challenges in communication methods adopted by organization. Swot analysis create a platform for a best communication set up. Competence and incompetence of organization can be analyzed by the help of this technique. Process of strategy formulation starts with Swot analysis technique.

THE SAME FACTOR CAN BE PLACED AS STRENGTH AS WELL AS WEAKNESS. IT GENERATES LENGTHY LISTS OF SEVERAL INTERRELATED OTHER PROBLEMMS. THERE IS NO OBLIGATION TO VERIFY OPINIONS WITH DATA OR ANALYSIS. THERE IS NO LOGICAL LINK TO STRATEGY IMPLENTATION.

1. 2. 3. 4.

S-O STRATEGIES W-T STRATEGIES S-T STRATEGIES W-O STRATEGIES

Use

the strengths to exploit the opportunities.

 Neutralized

Threats of environment by reducing weaknesses to the minimum level.

 IDENTIFY

WAYS THAT WILL REDUCE EXTERNAL THREATS

 OVERCOME

WEAKNESSES TO PURSUE OPPORTUNITIES

SWOT ANALYSIS IS A SYSTEMATIC APPROACH TO UNDERSTAND THE ENVIRONMENT AND FORMULATE STRAEGIC POLICIES. AN UNDERSTANDING OF INTERNAL ENVIRONNMENT IN TERMS OF STRENGTHS AND WEAKNESSES AND OF EXTERNAL ENVIRONMENT IN TERMS OF OPPORTUNITIES AND THREATS IS VERY IMPORTANT FOR THE EXIXTENCE, GROWTH AND PROFITIABILITY OF ANY ORGANISATION.

TO SUM UP, WE CAN SAY

SWOT ANALYSIS IS A KEY TO SUCCESS.