SWOT Analysis

SWOT Analysis Sample

A scan of the internal and external environment is an important part of the strategic planning
process. Environmental factors internal to the firm usually can be classified as strengths (S) or
weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats
(T). Such an analysis of the strategic environment is referred to as a SWOT analysis.

Strengths :-

A firm’s strengths are its resources and capabilities that can be used as a basis for developing a
competitive advantage. Examples of such strengths include:
• Patents
• Strong brand names
• Good reputation among customers
• Cost advantages from proprietary know-how
• Exclusive access to high grade natural resources
• Favourable access to distribution networks

Weaknesses :-

The absence of certain strengths may be viewed as a weakness. For example, each of the
following may be considered weaknesses:
• Lack of patent protection
• A weak brand name
• Poor reputation among customers
• High cost structure
• Lack of access to the best natural resources
• Lack of access to key distribution channels
In some cases, a weakness may be the flip side of a strength. Take the case in which a firm has
a large amount of manufacturing capacity. While this capacity may be considered a strength
that competitors do not share, it also may be considered a weakness if the large investment in
manufacturing capacity prevents the firm from reacting quickly to changes in the strategic
environment.

Opportunities :-

The external environmental analysis may reveal certain new opportunities for profit and growth.
Some examples of such opportunities include:
• An unfulfilled customer need
• Arrival of new technologies
• Loosening of regulations
• Removal of international trade barriers

Threats :-

Changes in the external environmental also may present threats to the firm. Some examples of
such threats include:
• Shifts in consumer tastes away from the firm’s products
• Emergence of substitute products
• New regulations
• Increased trade barriers

What is Significance of Management

Analysis of business failures made over many years shows that a high percentage of these failures was due to unqualified or inexperienced management. The Bank of America has said, in its publication "Small Business Reporter".
"In the final analysis, more than 90% of business failures are due to managerial incompetence and inexperience."

The significance of management is much more in case of developing countries. In recent years development specialists has shown in their research that availability of money or technology does not bring development. The limiting factor in almost every case has been the lack of quality on the part of managers.

There are some people or groups who believe that there is no need of management. In fact, they feel that people would work together better and with more personal satisfaction if there were no managers. They refer 'team effort' as the ideal group operation. Perhaps they do not realise that whenever an individual plays a game, he has clear group goals as well as some personal goals also. In fact, every group effort designed to attain goals with minimum cost of time, money and materials , adopts some basic principles and techniques of management.

Management is critical in the nation's economic and social development also. Efficient management helps a developing country to make better use of resources for the achievement of economic development.

Definition of Management

Definitions :->

Management, as a discipline is sufficient old but the experts and management practitioners are not yet agreed on a common definition. Due to growing size and complexities of business, there is rapid change in management styles and complexities of business, there is rapid change in management styles and practices. Therefore, it is very difficult to have a definition of management which may be commonly accepted by all. A wide range of definitions exist in the literature on management. some of these definitions are as follows-

• Management is a function, a discipline, a task to be done, and managers practice this discipline, carry out the functions and discharge these tasks-------Peter F. Drucker
• Management is the process by which a cooperative group directs actions towards common goals-------------------Joseph Massie
• Management is the process by which managers create,direct,maintain and operate purposive organisations through systematic, co-ordinated and co-operative human effort.---------------------------------------Dalton Mac Forland
• Management is the work of creating and maintaining environments in which people can accomplish goals efficiently and effectively.----------Robert Albanese
• Management is the art of getting things done through people.----------Mary Parker Follett
• Management is the co-ordination of all resources through the processes of planning,organising,directing and controlling in order to attain stated goals.----------Henry sisk

For our purposes, management refers to a set of functions which unite group efforts in a meaningful manner.The value of the output or results should be more than the cost of the inputs of resources. The results may be measurable or intangible,direct or indirect,it does not make any difference. There should be net gain in the form of utilisation of resources and achievement of goals.

Introduction to Management

Mostly in our life, we are members of one or more organization- a college, a sport team, a religious association or a business. The organisations we belong differs from one another in many ways. Some ways be organised formally while other may be structured casually. But there are some elements which are basic and common in all organisations. The most common element of our organisations is that there is a goal or purpose. Without a goal, there is no reason for an organisation to exist. They acquire and allocate the necessary resources to achieving their goals. Our organisations are not self dependent, but always exist in an environment with other organisations on which they are dependent for the resources they need. Finally there is some leader or manager who is responsible for helping the organisations to achieve their goals. Without some manager, a coach, a conductor, a sales executive, the organisation can not flourish.



Ever since people started working in groups to achieve the goals, which they could not achieve as individuals - management is an essential part of all organisations to co-ordinate individual efforts. Management is an essential activity in every aspect of organised life. In fact, everyone is a manager in his daily life. A person is required to manage his time and other resources in economic way. Management is a process of taking certain decisions and putting them into action. Both these activities, deciding and doing are important to achieve the goals of any organisations.





In brief :

• Management is the brain of an organisation because it takes decisions at every moment.


• Management co-ordinates the activities of an organisations in a meaningful manner.


• Management is not only a function but also the group of people who discharge it.


• It involves utilisation of physical, human and other required resources in a proper way through certain techniques and skills. An organisation becomes a functioning system only when management utilises the resources in a systematic way.
• Managers keep themselves in contact with the changing business environment an supply foresight to the organization.
• It is primary task of the management to shape the organization and make the resources productive so that society may get optimum benefit.
• The survival and success of an organization depend to a large extent on the competence and character of management.
• It is a challenging job which requires for a manager to be alert an adaptive and to restrain their emotions an egos.
• All human organization need management, whether they are government departments,educational bodies, hospitals or business enterprises.
• Complexity and uncertainty of environment differs from one organization to another, so the approach and process of management must be determined keeping in view the realities of each organization.

If there is an organization which has man power capital, machinery and all other resources but no management, the result will be total confusion and nobody will know what to do,how to do,when to do and why. Everybody will manage his own activities and nobody will be responsible to any other. There will be wastage of resources and no objective will be achieved. Thus no organization can survive without efficient management