Transcript STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
-SWOT ANALYSIS
FALL, 2009
SWOT
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It summarises the key issues from the
business environment and the strategic
capability of an organisation that are most
likely to impact on strategy formulation.
Aim: Identify the extent to which current
strengths and weaknesses are capable of
dealing with changes taking place in the
macro or business environment.
Output: Choice of markets, competitive
strategies
SWOT AT DIFFERENT LEVELS
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AT THE MACRO LEVEL (CONSIDERING ALL
MARKETS THAT THE COMPANY IS SERVING
OR WILLING TO SERVE)
AT THE MARKET LEVEL (SPECIFIC TO AN
INDUSTRY)
AT THE SUB-MARKET LEVEL (EG. HOUSING
SECTOR IN CHINA)
TWO TYPES OF STRENGTHS
AND WEAKNESS:
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STRUCTURAL (ABOUT CURRENT
STRATEGIC POSITION)(FOUND BY
EXTERNAL ANALYSIS)
IMPLEMENTATIONAL (ABOUT
COMPANY’S ABILITY TO IMPLEMENT
ITS CHOSEN STRATEGIES)(FOUND BY
INTERNAL ANALYSIS)
STRENGTHS AND WEAKNESSES
SNC-LAVALIN, CANADA:
 Engineering and construction firm and a
world leader in ownership and
management of infrastructures, offices
in 30 countries
 Strengths: FINANCIAL CAPABILITY,
INTERNATIONAL NETWORK,
EXPERIENCE, COMPANY CULTURE
STRENGTHS AND WEAKNESSES
LAFARGE, FRANCE:
 Building Materials (cement, concrete,
gypsum, roofing etc.), operates in 75
countries
 Strengths: RESEARCH AND DEVELOPMENT,
JOINT VENTURE PARTNERS, BRAND IMAGE,
DECENTRALISED ORGANISATIONAL
STRUCTURE (BY MEANS OF AUTONOMOUS
DIVISIONS
ABOUT STRENGTHS AND
WEAKNESSES
1. STRENGTH FACTORS MAY AS WELL BE
WEAKNESS FACTORS:
 YOUNG STAFF ….. UNEXPERIENCED STAFF
 VOLUME PLAYER ….. NOT INNOVATIVE
2. WHETHER A FACTOR IS A STRENGTH
FACTOR OR A WEAKNESS FACTOR DEPENDS
ON THE MARKET/ENVIRONMENT
 EXPERIENCE IN ONE MARKET ….. LACK OF
EXPERIENCE IN THE OTHER
ABOUT OPPORTUNITIES
AND THREATS
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FOR A SWOT ANALYSIS IN A MARKET :
OPPORTUNITIES CAN BE NEW SUB-MARKETS,
FAVOURABLE CHANGE IN THE COMPETITIVE
ENV. ETC. (SAME IS TRUE FOR THREATS,
SHRINKAGE IN DEMAND, NEW COMPETITORS
ETC.) + PESTEL FACTORS
A SINGLE FACTOR MAY BE AN OPPORTUNITY
FOR ONE MARKET WHEREAS IT MAY BE A
THREAT FOR THE OTHER (EG. INCREASE IN
DEMAND FOR SUMMER HOUSES ….. DEMAND
FOR HOTEL SERVICES)
OPPORTUNITIES MAY BE NEW MARKETS/SUB-MARKETS
(SCENARIOS ABOUT FUTURE)
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UNDERGROUND CITIES
CONSTRUCTION IN SPACE
SUBMARINE CITIES
INTEGRATED SERVICES (FINANCE-DESIGNCONSTRUCTION-REP./REHAB.)
DISPOSABLE BUILDINGS
ROBOTS USED DURING CONSTRUCTION
ADAPTABLE DESIGN (CHANGEABLE ENVIRONMENT)