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To help decision makers SHARE AND COMPARE IDEAS
To BRING A CLEAR COMMON PURPOSE and UNDERSTANDING of
factors for success.
To ORGANIZE IMPORTANT FACTORS linked to success and
failure in the business world.
To ANALYZE ISSUES THAT HAVE LED TO FAILURE in the past.
To PROVIDE LINEARITY TO DECISION MAKING PROCESS allowing complex ideas to be presented systematically.
Aim of SWOT Analysis?
Be REALISTIC about the strengths and weaknesses of your
organization.
• It should DISTINGUISH between where your organization is
today, and where it could be in the future.
• Be SPECIFIC --avoid grey areas.
• Always apply SWOT in RELATION TO YOUR COMPETITION (i.e.
better than or worse than your competition).
• KISS! Keep it SHORT AND SIMPLE ☺--avoid complexity and
over analysis
• SWOT analysis is SUBJECTIVE
Simple Rules for a Successful
SWOT Analysis
Market research
is
an estimation of
the possible size
and characteristics
of customers or
firms who could be
buying your
product
analysis of an industry
The ________________ is a study
of an industry's
current scope and
the types of
products being
provided
What is SWOT?
Tool for auditing an organization and its environment
• First stage of planning
• Helps marketers to focus on key issues.
• SWOT stands for Strengths, Weaknesses,
Opportunities, and Threats.
• Strengths & Weaknesses = INTERNAL factors
• Opportunities & Threats = EXTERNAL factor
Opportunities & Threats
EXTERNAL factors
SOCIAL
Population
Growth Rate
Age
Distribution
Career
Attitudes
Lifestyle
Attitudes
Cultural
Barriers
How much importance does society
and culture have in the green market
and what are its determinants?
Legislation
Consumer
Protection Law
Copyright and patent Law
Healthy and Safety Law
Employment Law
Are there any current legislations
that regulate bio-industry or will
there be legal changes?
Environmental and Ethical
What are the environmental
considerations and ethical
concerns impacting on bio-based
industry and the market?
SWOT
A ______ analysis is used
to determine your internal
abilities as well as external
factors that may impact your
performance. _______ is an
acronym of strengths,
weaknesses, opportunities
and threats.
SWOT
A ______ analysis is used
to determine your internal
abilities as well as external
factors that may impact your
performance. _______ is an
acronym of strengths,
weaknesses, opportunities
and threats.
Strengths & Weaknesses
INTERNAL factors
STRENGTH
Characteristics of the business or a team that give it an
advantage over others in the industry.
Positive tangible and intangible attributes, internal to an
organization.
Beneficial aspects of the organization or the capabilities of an
organization, which includes human competencies, process
capabilities, financial resources, products and services,
customer goodwill and brand loyalty.
Examples - Abundant financial resources, Well-known brand
name, Economies of scale, Lower costs [raw materials or
processes, Superior management talent, Better marketing
skills, Good distribution skills, Committed employees.
WEAKNESSES
Characteristics that place the firm at a disadvantage
relative to others.
Detract the organization from its ability to attain the
core goal and influence its growth.
Weaknesses are the factors which do not meet the
standards we feel they should meet. However,
weaknesses are controllable. They must be minimized
and eliminated.
Examples - Limited financial resources, Weak spending
on R & D, Very narrow product line, Limited
distribution, Higher costs, Out-of-date products /
technology, Weak market image, Poor marketing skills,
Limited management skills, Under-trained employees
OPPORTUNITIES
Chances to make greater profits in the environment -
External attractive factors that represent the reason for
an organization to exist & develop.
Arise when an organization can take benefit of
conditions in its environment to plan and execute
strategies that enable it to become more profitable.
Organization should be careful and recognize the
opportunities and grasp them whenever they arise.
Opportunities may arise from market, competition,
industry/government and technology.
Examples - Rapid market growth, Rival firms are complacent, Changing
customer needs/tastes, New uses for product discovered, Economic
boom, Government deregulation, Sales decline for a substitute product
THREATS
External elements in the environment that could cause
trouble for the business - External factors, beyond an
organization's control, which could place the
organization's mission or operation at risk.
Compound the vulnerability when they relate to the
weaknesses. Threats are uncontrollable. When a threat
comes, the stability and survival can be at stake.
Examples - Entry of foreign competitors, Introduction of
new substitute products, Product life cycle in decline,
Changing customer needs/tastes, Rival firms adopt new
strategies, Increased government regulation, Economic
downturn.
PESTEL
a complementary tool to SWOT, expands on the
analysis of external context by looking in detail at specific
types of issues that frequently have an impact on
implementation of project/ initiatives.
the term '____________' refers to the domains it considers:
Political, Economic, Social, Technological,
Environmental and Legal. _____________involves identifying
the factors in each of these six domains that are relevant
for the project being considered
POLITICAL
Political Policy
Political
Stability
Corruption
Tax Policy
Labor law
What is the political situation of the
country and how can it affect bio-
based industry?
ECONOMIC
Economic
growth
Exchange
rates
Interest Rate
Inflation rate
Unemployment Rates
What are the prevalent economic
factors impacting bio-industry?
TECHNOLOGY
Technology
R&D Activity
Level of
innovation
Automation
Technological
Change
What technological innovations are
likely to arise and affect the bio-
economy market structure?
