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SWOT

Analysis
Reported by: GROUP
- Examen, Maryjoe
- Padua, Lyka
- Santiago, Joey Boy
- Avedana, Ada
- Guintibano, Clarice

SWOT ANALYSIS
- A technique that enables a group or
individual to move from everyday
problems and traditional strategies to a
fresh prospective.

- The overall evaluation of a


companys strength, weaknesses,
opportunities and threats. It involves
monitoring the external and internal
marketing environment.

SWOT analysis looks at your strengths


and weaknesses, and the opportunities
and threats your business faces.

What is SWOT Analysis?

Strength
s

SWOT
Oppurtuni
ty
Analysis

Threa
ts

Weakne
ss

Technique is
credited to
Albert
Humphrey
who led a
research
project at
Stanford
University in
the 1960s
and 1970s.

SWOT is an acronym for:

EXTERNAL ENVIRONMENT
(OPPORTUNITY ANG THREAT) ANALYSIS

- A business unit has to


monitor key
macroenvironment forces
and significant
microenvironment actors
that affect its ability to earn
profit.

Market Opportunity Analysis


(MOA)

An application
offorecastingtechniquesto
themarket factorsthat
mayinfluencethedemandfor
aproductidentified as amarket
opportunity.

Marketing opportunities

It is an area of buyer need and


interest in which there is a high
probability that a company can
profitably satisfy that need.

Internal
Environment
(Strengths/Weaknesse
s)
Analysis

It

is one thing to find


attractive opportunities
and another to be able
to take advantage of
them.

(a) Opportunity Matrix


1. Company develops more powerful
lighting system
2. Company develops device to measure
energy efficiency of any lighting system
3. Company develops device to measure
illuminations level
4. Company develops software program to
teach lighting fundamentals to TV studio
personnel

(b) Threat Matrix


1. Competitor develops superior
lighting system
2. Major prolonged economic
depression
3. Higher costs
4. Legislation to reduce number of TV
studio acenses

Clearly,

the business does not have


to correct all its weaknesses, nor
should. It gloat all its strengths. The
big question is whether the business
should limit itself to those
opportunities where it possesses the
required strengths or whether it
should consider opportunities that
mean it might have to acquire or
develop certain strengths.

e.g.

*In one major electronics


company, the engineers look
down on the salespeople as
engineers who couldnt make
it, and the salespeople look
down on the service people as
salespeople who couldnt make
it.

Goal Formulation
Once

the company has


performed the SWOT analysis, it
can proceed to develop specific
goals for the planning period.
This stage of the process is
called goal formulation.

For an MBO system to work, the units


objectives must meet four criteria:
1. They must be arranged hierarchically,
from the most to the least important.
For instance, the business units key
objective for the people may be to increase
the rate of returns on investment. Managers
can increase profit level by increasing
revenue reducing expenses.

2. Objective should be stated


quantitatively whenever possible. The
objective increase the returns on
investment (ROI) is better stated as a goal
increase ROI to 1.5 percent within two
years.
3. Goals should be realistic. They should
arise from an analysis of the business units
opportunities and strengths, not from
wishful thinking.
4. Objectives must be consistent. It is
not possible to maximize sales and profits
simultaneously.

Other

important trade-offs include


short-term profit versus long term
growth, deep penetration of
existing markets versus developing
new markets, profit goals versus
non-profit goals, and high growth
versus low risk. Each choice in this
set of trade-offs calls for a
different marketing strategy.

Many

believe that adopting the goal of


strong market share growth may mean
having to forego strong short-term profits.
This longer term view of the market was
held by Japanese businesses, which have
traditionally placed less emphasis on
meeting quarterly profit targets. Yet some
believe that most businesses can be a
growth business and can grow profitably,
citing success stories such as Citibank and
GE Capital.

Goal Formulation

Goal
Managers

use this term to describe


objectives that are specific with respect
to magnitude and time

Objectives of most
business units
Profitability
Sales

growth
Market shard improvements
Risk containment
Innovation, and
Reputation

Criteria for an MBO to work


They

must be arranged heirarchically from


the most to the least

Objective

should be stated quantitatively


whenever possible

Goals

should be realistic

Objectives

must be consistent

STRATEGIC
ALLIANCES

STRATEGIC
ALLIANCES
Strategic alliances are partnerships
in which two or more companies
work
together
to
achieve
objectives
that
are
mutually
beneficial. Companies may share
resources,
information,
capabilities and risks to achieve
this.

Companies need to give a creative


thought to finding partners that
might complement their strengths
and offset their weaknesses.

FOUR
CATEGORIES OF
STRATEGIC
ALLIANCES

PRODUCT OR SERVICE
ALLIANCES
one company licenses another to
produce its product, or two companies
jointly market their complementary
products or a new product.

PROMOTIONAL
ALLIANCES
One company agrees to carry a
promotion
for
another
companys product or service.

LOGISTIC ALLIANCES

One company offers logistical services


for another companys product.

PRICING COLLABORATIONS
One or more companies join in
a special pricing collaboration.