organization swot analysis for quality improvement eng. r. l. nkumbwa

Organization SWOT Analysis for Quality ImprovementEng R L Nkumbwa

This presentation will cover

SWOT analysis SWOT analysis framework

Strengths Weaknesses Opportunities Threats

Why is SWOT important Identifying SWOT analysisSWOT analysis what to look for Strategy formulation Tools for strategy formulation A real example An exercise

SWOT Analysis

The SWOT Analysis is a framework for analyzing your

companys strengths and weaknesses during the

Strategic Planning process

It captures a realistic snapshot of your company today

SWOT stands for Strengths Weaknesses Opportunities

and Threats

Strengths and weaknesses relate to internal issues

within the company while opportunities and threats

relate to the external market in which the company

operates

SWOT Analysis

The SWOT analysis provides information that is helpful in matching the firms

resources and capabilities to the competitive environment in which it

operates

As such it is instrumental in strategy formulation and selection

SWOT Analysis Framework

Strengths

A firms strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage Examples of such strengths include

Exclusive access to high grade natural resources New technologies and own Patents Strong brand names Good reputation among customers and suppliers Cost advantages from proprietary know-how Good access to distribution networks


Weaknesses

Poor resources or lack of strengths may be viewed as weaknesses Examples of weaknesses include

A weak brand name Poor reputation among customers Poor market regulations High cost structure Lack of access to the best natural resources Poor distribution channels


Opportunities

An external analysis may reveal new opportunities for a companyrsquos profit and growth Examples of opportunities include

Future good regulations in the market New technologies and advances Possibility to make a new product An unfulfilled customer need Removal of international trade barriers


Threats

Changes in the external environmental also may present threats to the firm Examples of threats include

New competitor enters the market Emergence of substitute products Shifts in consumer tastes away from the firms products New regulations Increased trade barriers

Why is SWOT Analysis so Important

SWOT Analysis helps an institution or company identify and measure in

an organized way itsinternal strengths and weaknesses and

at the same time helps match them withOpportunities and threats in the market

S W O T

The strategy for a company must match both

Taking advantage of its internal strengths while defending against its weaknesses

And

Identifying the best market opportunities and minimizing external threats

SWOT

Every company has certain strengths such as dominant market share new technologies and

a strong net income

Not every strength is quite as evident such as a company that is very small but its size allows

it to innovate on a much faster pace

Every company even those which are not experiencing success right now has

strengths

Identifying Strengths

A strength is something a firm does well or a characteristic that enhances its competitiveness

Valuable competencies or know-how Valuable physical assets Valuable human assets Valuable organizational assets Important competitive capabilities An attribute that places an organization in a position of competitive advantage Alliances with capable partners

How can we determine our company strengths

Questions to answer

What is the companyrsquos market share Are the companyrsquos sales amp marketing functions effective Does the company have a strong financial position How is the company raising capital What are the companyrsquos major lines of business Does the company have skilled employees What are the companyrsquos historical successes Does the company have the ability to adapt and change What do you offer that makes you stand out from the rest

Identifying Weaknesses

A weakness is something a firm lacks does not very well or has a disadvantage Resource weaknesses relate to

Deficiencies in know-how or expertise or competenciesLack of important physical organizational or intangible assetsMissing capabilities in key areas

How can we determine our Company Weaknesses

Questions to answer

Is the companyrsquos marketing strategy effective What are the companyrsquos least profitable products Are there any of the companyrsquos products losing money Is the company able to hire and retain talented employees Does the company have a strong financial position Can it raise capital Is the company innovative Has it brought new products or services to market Does the company have high levels of corporate governance

How can we determine our Opportunities

Questions to answer

Are there new technologies that the company can use to create a new product Are there any good merge or acquisition opportunities Are there any possibilities of new technology Are there opportunities for strategic alliance with non-competitive businesses Are there opportunities to extend brands into related areas Are there money-losing ventures that can be divested to increase profitability

How can we determine our Threats

Questions to answer

Does the company have adequate reserves to withstand a down cycle Is there trade union activity that could have an adverse effect Are competitors eating away market share or driving down prices Do new regulations pose a threat to the company Does lack of access to capital limit the companyrsquos ability to invest

SWOT Analysis What to Look ForPotential Strengths

Product quality Good strong strategy Positive cash flows Powerful brand name or image High market share Proprietary technology Cost advantages Good communications Strong product innovation Good customer service Alliances

Potential Weaknesses

No clear strategic direction Obsolete product High debt ratio Higher costs than competitors Missing some key skills High number of days sales in inventory Internal operating problems Competitors are ahead in RampD Weak communications skillsWeak marketing strategy

SWOT Analysis What to Look ForPotential Opportunities

Take market share from Competitors Serving additional customer Expanding geographic areas Expanding product line Transferring skills to new products or services Vertical integration Alliances acquisitions or merges Exploit new technologies Extend brand name andor image

Potential Threats

Reduced buyer needs for product or services New competitors enter the market Substitute products Slow growth of the market Adverse shifts in political or economic conditions Costly new regulations or policies Growing leverage of customers or suppliers Demographic changes

Strategy FormulationStrengths (S) Weaknesses

(W)

Opportunities (O)

SO Strategies WO Strategies

Threats (T) ST Strategies WT Strategies

Tools for Strategy Formulation

1048710 SO Strategies Use strengths to take advantage of Opportunities

1048710 WO Strategies Overcome weaknesses to take advantage of opportunities

1048710 ST Strategies Use strengths to avoid threats

1048710 WT Strategies Minimize weaknesses and avoid threats

What can a SWOT analysis be used to assess

Launching a new product A company (its position in the market commercial viability etc) Outsourcing a service or a plant A strategic option such as entering a new market A business plan An opportunity to make an acquisition or a merge Changing a supplier or distributor A method of sales distribution A financing or investment opportunity

A real example DreamWorksDreamWorks SKG is engaged in the development and production

of live-action motion pictures and television programming DreamWorks has an established brand name as a result of its strong product portfolio and market presence However piracy of motion pictures could adversely affect the companys revenues

Strengths Weaknesses

Strong brand name Weak distribution and marketing networkUndiversified operations

Opportunities Threats

Growing international demandGrowth of DVD segmentGrowing digital broadcasting segment

Increasing cost of productionIntense competitionPiracy of motion pictures

An exerciseConstruct your own SWOT analysis

Prepare a SWOT chart for your current job career (Examine your current situation)

What are your strengths and weaknesses

How can you maximize your strengths and at the same time overcome your weaknesses

What are the external opportunities and threats that you are encountered


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Summary SWOT analysis

SWOT analysis framework Strengths Weaknesses Opportunities Threats

Why is SWOT important Identifying SWOT analysis


SWOT analysis what to look for Strategy formulation Tools for strategy formulation A real example An exercise

Reading list Bradford Robert W Duncan Peter J Tarcy Brian Simplified Strategic Planning A No-Nonsense Guide for Busy People Who Want Results Fast

Alan Chapman - httpwwwbusinessballscom

Mission and Vision Statements Amy McMillan and Deborah Hausler Encyclopedia of Management Ed Marilyn Helms

Dr Randall Hansen amp Katharine Hansen A Foot in the Door Networking Your Way into the Hidden Job Market and Write Your Way to a Higher GPA all published by Ten Speed Press

ldquoThe Art of Warrdquo by Sun Tzu

Bradford Robert W Duncan J Tarcy Brian Simpligied Strategic Planning a no-nonsense guide for busy people who want results fast

David Fred R (1993) Strategic Management 4th Ed New York Macmillan Publishing Company (Dr David also maintains a strategic planning web site httpwwwcheckmateplancom

This presentation will cover

SWOT analysis SWOT analysis framework


Why is SWOT important Identifying SWOT analysisSWOT analysis what to look for Strategy formulation Tools for strategy formulation A real example An exercise

SWOT Analysis






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Strengths




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Strengths




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Opportunities




Threats







S W O T



And


SWOT


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strengths





Questions to answer






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(W)

Opportunities (O)























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SWOT Analysis



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Strengths




Weaknesses




Opportunities




Threats







S W O T



And


SWOT


a strong net income




strengths





Questions to answer






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Potential Threats



(W)

Opportunities (O)























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Strengths




Weaknesses




Opportunities




Threats







S W O T



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SWOT


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strengths





Questions to answer






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Potential Threats



(W)

Opportunities (O)























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Threats







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Questions to answer






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Opportunities (O)























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Threats







S W O T



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strengths





Questions to answer






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Opportunities (O)























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Threats







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Questions to answer






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Potential Threats



(W)

Opportunities (O)























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1 2 3 4 5 6


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S W O T



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SWOT


a strong net income




strengths





Questions to answer






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Potential Threats



(W)

Opportunities (O)























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1 2 3 4 5 6


1 2 3 4 5 6

1 2 3 4 5 6













SWOT


a strong net income




strengths





Questions to answer






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Potential Threats



(W)

Opportunities (O)























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Potential Threats



(W)

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(W)

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organization swot analysis for quality improvement eng. r. l. nkumbwa

Documents

organization swot analysis

external analysis

new opportunities

firms strengths

internal strengths

lack of strengths

companys strengths

examples of weaknesses