PROBLEMS AND

PROSPECTS OF

SWOT ANALYSIS

ON MARKETING

PLANNING

1

BY

………………………………..

COLLEGE OF ACCOUNTANCY AND COMPUTER

TECHNOLOGY

Block B, Flat 8, Masoje Estate. PTI Road Effurun. Delta

State. Nigeria.

(AKP/WRR/BMG/BUS/HND2007…………)

A RESEARCH PROJECT WRITTEN IN THE DEPARTMENT OF

BUSINESS ADMINISTRATION, SCHOOL OF BUSINESS

STUDIES. SUBMITTED

IN PARTIAL FULFILMENT FOR THE AWARD OF HIGHER

NATIONAL DIPLOMA (HND) IN BUSINESS

ADMINISTRATION.

NOVEMBER 2009

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CERTIFICATION

We certify that this work was carried out by ………………………

in the School of Business Studies, department of Business

Administration, for the award of higher national diploma in

Business Administration.

__________________ ________________ (Supervisor) Centre Co-ordinator

Date __________ Date __________

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DEDICATION

I dedicate this project to Almighty God for his divine guidance,

grace and mercy throughout my academic pursuit. May all

Glory, Honour, Majesty and power be ascribed unto His Holy

Name in Jesus Name.

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ACKNOWLEDGEMENT

I am most grateful to the Almighty God for giving me life,

strength and courage to sail through my educational career

despite all odds and obstacles.

In writing this project, I am indebted to my wife, Mrs Favour

Ubido for her contributions; support and encouragement in

making this project work a success.

I will like to use this opportunity to express my sincere thanks

to my brothers and sisters, relatives, friends and loved ones for

their prayers, moral and financial support through this program.

My profound gratitude goes to my Supervisor Mr Victor

Udofot who despite his crowded schedule, sacrificed time to

read through the manuscript without which this project would

not have seen the light of the day.

My special thanks also goes to my course mates for their

advice, encouragement and assistance.

In like manner, I wish to acknowledge the effort of all my

lecturers for their principal knowledge imparted on me during

my period of study.

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With special thanks to school management team for their

endless love shown to me during the course of my studies.

Finally, thanks to others I cannot remember during the course

of the write up, may God reward every effort of kindness and

love shown during my academic pursuit.

ABSTRACT

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The SWOT analysis provides information that is helpful in

matching the firm's resources and capabilities to the

competitive environment in which it operates. As such, it is

instrumental in strategy formulation and selection

In this project, attempt was made to examine problems and

prospect of swot analysis on marketing planning.

The writer critically looked into the short comings/impact of

swot analysis , which lead to the establishment of the

objectives of the company under consideration which included;

generating enough surplus to pay back the invested capital to

the investors as early as possible.

To generating surplus for — (i) Expansion, (ii) Improvement of

quality, (iii) Increasing efficiency through introducing new

technology, (iii) Innovative marketing to reach the deeper

layers of low-income people and disadvantaged communities

and (v) Undertake research and experimentation to improve

and diversify products and services.

In order to arrive at a conclusive decision on the above

objectives the writer carried out an empirical survey and library

research from which the various data were obtained. Based on 7

the data, two hypothesis formulated by the researcher was

tested using Chi-square analysis to arrive at a better

conclusion. The hypothesis testing was based on primary data

while the secondary data were further analyzed to portray the

state of affairs at various periods.

CHAPTER ONE

INTRODUCTION

1.0 THE BACKGROUND OF THE STUDY

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SWOT being the acronym for Strengths, Weaknesses, Opportunities and

Threats. It is a simple, much-used technique which can help to prepare

or amend plans, in problem solving and decision making.

SWOT analysis came from the research conducted at Stanford Research

Institute from 1960-1970. The background to SWOT stemmed from the

need to find out why corporate planning failed. The research was funded

by the fortune 500 companies to find out what could be done about this

failure. The Research Team were Marion Dosher, Dr Otis Benepe, Albert

Humphrey, Robert Stewart, Birger Lie.

It all began with the corporate planning trend, which seemed to appear

first at Du Pont in 1949. By 1960 every Fortune 500 company had a

'corporate planning manager' (or equivalent) and 'associations of long

range corporate planners' had sprung up in both the USA and the UK.

However a unanimous opinion developed in all of these companies that

corporate planning in the shape of long range planning was not working,

did not pay off, and was an expensive investment in futility.

It was widely held that managing change and setting realistic objectives

which carry the conviction of those responsible was difficult and often

resulted in questionable compromises.

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The fact remained, despite the corporate and long range planners, that

the one and only missing link was how to get the management team

agreed and committed to a comprehensive set of action programmes.

To create this link, starting in 1960, Robert F Stewart at SRI in Menlo

Park California lead a research team to discover what was going wrong

with corporate planning, and then to find some sort of solution, or to

create a system for enabling management teams agreed and committed

to development work, which today we call 'managing change'.

The research carried on from 1960 through 1969. 1100 companies and

organizations were interviewed and a 250-item questionnaire was

designed and completed by over 5,000 executives. Seven key findings

lead to the conclusion that in corporations chief executive should be the

chief planner and that his immediate functional directors should be the

planning team. Dr Otis Benepe defined the 'Chain of Logic' which

became the core of system designed to fix the link for obtaining

agreement and commitment.

1. Values

2. Appraise

3. Motivation

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4. Search

5. Select

6. Programme

7. Act

8. Monitor and repeat steps 1 2 and 3

We discovered that we could not change the values of the team nor set

the objectives for the team so we started as the first step by asking the

appraisal question ie what's good and bad about the operation. We

began the system by asking what is good and bad about the present and

the future. What is good in the present is Satisfactory, good in the future

is an Opportunity; bad in the present is a Fault and bad in the future is a

Threat. This was called the SOFT analysis.

When this was presented to Urick and Orr in 1964 at the Seminar in Long

Range Planning at the Dolder Grand in Zurich Switzerland they changed

the F to a W and called it SWOT Analysis.

SWOT was then promoted in Britain by Urick and Orr as an exercise in

and of itself. As such it has no benefit. What was necessary was the

sorting of the issues into the programme planning categories of:

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1. Product (what are we selling?)

2. Process (how are we selling it?)

3. Customer (to whom are we selling it?)

4. Distribution (how does it reach them?)

5. Finance (what are the prices, costs and investments?)

6. Administration (and how do we manage all this?)

The second step then becomes 'what shall the team do' about the issues

in each of these categories. The planning process was then designed

through trial and error and resulted finally in a 17 step process beginning

with SOFT/SWOT with each issue recorded separately on a single page

called a planning issue.

The first prototype was tested and published in 1966 based on the work

done at 'Erie Technological Corp' in Erie Pa. In 1970 the prototype was

brought to the UK, under the sponsorship of W H Smith & Sons plc, and

completed by 1973. The operational programme was used to merge the

CWS milling and baking operations with those of J W French Ltd.

The process has been used successfully ever since. By 2004, now, this

system has been fully developed, and proven to cope with today's

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problems of setting and agreeing realistic annual objectives without

depending on outside consultants or expensive staff resources.

1.1 OBJECTIVES OF THE STUDY

It would have been a total waste of time, efforts, energy and of course

fund, in conducting this research if it was not meant to achieve any

meaningful objectives. The research would also have been seen as a

fruitless exercise if there were no fundamental objectives to be achieved

at the end of the study. The major objective of the study therefore was:

Unveiling the problems and prospects of SWOT analysis on marketing

planning. While the subsidiary objectives provides:

a framework for identifying and analysing strengths, weaknesses,

opportunities and threats

an impetus to analyse a situation and develop suitable strategies

and tactics

a basis for assessing core capabilities and competences of

business plan.

the evidence for, and cultural key to, change in organisation

a stimulus to participation in a group experience.

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1.2 THE SIGNIFICANCE OF THE STUDY

The researcher has no doubt whatsoever, that the findings and

conclusion presented and offered respectively in this study, will be of

immense benefit to the following categories of people among others:

(i) POLICY MAKERS OR FORMULATORS

Makers or formulators of policies, economic planners, and economic

advisers to the chief executives, will find the recommendation in this

study very useful in the performance of their respective duties.

This is so because they (policy makers economic planners) can use the

research report as a guide while formulating some important

policies.

(ii) OTHER RESEARCHERS

Other researchers can also use the work as a reference material where

and when necessary.

(iii) RESEARCH STUDENTS

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Research students will equally find the findings and conclusion offered in

this study very useful for further research and for reference purposes,

especially if they (students) are researching into a related area.

1.3 LIMITATION OF THE STUDY

Research work is subject to one form of limitation or the other, mine is

not an exemption.

It was the initial thought of the researcher that the exercise was easy but

the contrary was the case. As a student, several academic demands

compete with the limited but precious time available. This implies that

none of the competing exercise could be effectively handled without the

others being worse off.

This was my situation. Although the time expended was too small to do

justice to the study. The opportunity cost in terms of other equally

important activities forgone or cursorily attended to, was made.

The researcher faces some embarrassment arising from low-level

educated staff of the company completing the questionnaire who could

not understand the essence of the research work as this.

1.4 HYPOTHESIS

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It is a conjectural statement of the relationships between two or more

variables. It is testable, tentative problem explanation of the relationship

between two or more variables that create a state of affairs or

phenomenon.

E,C, Osuola (1986 page 48) said hypothesis should always be in

declarative sentence form, and they should relate to them generally or

specially variable to variables.

HYPOTHESIS THUS:

1. Explain observed events in a systematic manner

2. Predict the outcome of events and relationships

3. Systematically summarized existing knowledge.

In essence, there exist NULL HYPOTHESIS set up only to nullify the

research hypothesis and the ALTERNATIVE HYPOTHESIS for the purpose

of the study. For the efficiency of the study, the hypothesis is as follows:

Null Hypothesis (HO)

1. The usefulness of SWOT analysis is limited to profit-seeking

organizations.

2.` The greatest strength of SWOT is not its greatest weakness:

flexibility.

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Alternative Hypothesis (HI)

1. The usefulness of SWOT analysis is not limited to profit-seeking

organizations.

2. The greatest strength of SWOT is also its greatest weakness: flexibility.

1.5. STATEMENT OF RESEARCH PROBLEM

The aim of any SWOT analysis is to identify the key internal and external

factors that are important to achieving the objective. These come from

within the company's unique value chain. SWOT analysis groups key

pieces of information into two main categories:

Internal factors – The strengths and weaknesses internal to the

organization.

External factors – The opportunities and threats presented by the

external environment to the organization. - Use a PEST or PESTLE

analysis to help identify factors

The internal factors may be viewed as strengths or weaknesses

depending upon their impact on the organization's objectives. What may

represent strengths with respect to one objective may be weaknesses

for another objective. The factors may include all of the 4P's; as well as

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personnel, finance, manufacturing capabilities, and so on. The external

factors may include macroeconomic matters, technological change,

legislation, and socio-cultural changes, as well as changes in the

marketplace or competitive position. In considering the statement of the

research problem, the following questions comes to mind

Strengths:

What advantages does your company have?

What do you do better than anyone else?

What unique or lowest-cost resources do you have access to?

What do people in your market see as your strengths?

What factors mean that you "get the sale"?

Consider this from an internal perspective, and from the point of view of your

customers and people in your market. Be realistic: It's far too easy to fall prey

to "not invented here syndrome". (If you are having any difficulty with this, try

writing down a list of your characteristics. Some of these will hopefully be

strengths!)

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In looking at your strengths, think about them in relation to your competitors -

for example, if all your competitors provide high quality products, then a high

quality production process is not a strength in the market, it is a necessity.

Weaknesses:

What could you improve?

What should you avoid?

What are people in your market likely to see as weaknesses?

What factors lose you sales?

Again, consider this from an internal and external basis: Do other people seem

to perceive weaknesses that you do not see? Are your competitors doing any

better than you? It is best to be realistic now, and face any unpleasant truths

as soon as possible.

Opportunities:

Where are the good opportunities facing you?

What are the interesting trends you are aware of?

Useful opportunities can come from such things as:

Changes in technology and markets on both a broad and narrow scale.

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Changes in government policy related to your field.

Changes in social patterns, population profiles, lifestyle changes.

Local events.

A useful approach for looking at opportunities is to look at your strengths and

ask yourself whether these open up any opportunities.

Alternatively, look at your weaknesses and ask yourself whether you could

create opportunities by eliminating them.

Threats:

What obstacles do you face?

What is your competition doing that you should be worried about?

Are the required specifications for your job, products or services

changing?

Is changing technology threatening your position?

Do you have bad debt or cash-flow problems?

Could any of your weaknesses seriously threaten your business?

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Carrying out this analysis will often be illuminating – both in terms of pointing

out what needs to be done, and in putting problems into perspective.

1.6 THE STRUCTURE OF THE RESEARCH WORK

This research work is to be organized in five chapters as follows:

1. Introduction

2. Review of Related Literature

3. Research Methods and Producers

4. Data presentation and Analysis and

5. Findings, Summary and Conclusion

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CHAPTER TWO

REVIEW OF RELATED LITERATURE

1.0 UNDERSTANDING SWOT ANALYSIS

SWOT analysis is a general technique which can be applied across diverse

functions and activities, but it is particularly appropriate to the early stages of

planning.. Performing a SWOT analysis involves the generation and recording

of the strengths, weaknesses, opportunities, and threats in relation to a

particular task or objective. It is customary for the analysis to take account of

internal resources and capabilities (strengths and weakness) and factors

external to the organisation (opportunities and threats).

Benefits

SWOT analysis can provide:

* a framework for identifying and analysing strengths, weaknesses,

opportunities and threats

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* an impetus to analyse a situation and develop suitable strategies and

tactics

* a basis for assessing core capabilities and competences

* the evidence for, and cultural key to, change

* a stimulus to participation in a group experience.

Action checklist

1. Establish the objectives

The first key step in any project: is to be clear on what you are doing and why.

The purpose of conducting a SWOT may be wide or narrow, general or specific.

2. Select appropriate contributors

Important if the final outcome is to result from consultation and discussion,

not just personal views, however expert.

3. Allocate research and information gathering tasks

Background preparation is a vital stage for the subsequent analysis to be

effective, and should be divided among the SWOT participants. This

preparation can be carried out in two stages: exploratory, followed by data

collection, and detailed, followed by a focused analysis. Gathering information

on Strengths and Weaknesses should focus on the internal factors of skills,

resources and assets, or lack of them. Gathering information on Opportunities

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and Threats should focus on the external factors over which you have little or

no control, such as social or economic factors.

4. Create a workshop environment

If compiling and recording the SWOT lists takes place in meetings, then do

exploit the benefits of workshop sessions. Encourage an atmosphere

conducive to the free flow of information and to participants saying what they

feel to be appropriate, free from blame. The leader / facilitator has a key role

and should allow time for free flow of thought, but not too much. Half an hour

is often enough to spend, for example, on Strengths, before moving on. It is

important to be specific, evaluative and analytical at the stage of compiling and

recording the SWOT lists - mere description is not enough.

5. List Strengths

Strengths can relate to the group, to the environment, to perceptions, and to

people. "People" elements include the skills, capabilities and knowledge of

participants. Other people strengths include:

* friendly, cooperative and supportive participants

* appropriate levels of involvement through delegation and trust.

6. List Weaknesses

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This session should not constitute an opportunity to focus on the negative but

be an honest appraisal of the way things are. Key questions include:

* what obstacles may prevent progress?

* which elements need strengthening?

* are there any real weak links in the chain?

It is not unusual for "People" problems - poor communication, inadequate

leadership, lack of motivation, too little delegation and no trust - to feature

among the major weaknesses.

7. List Opportunities

This step is designed to assess the socio-economic, environmental and

demographic factors, among others, to evaluate the benefits they may bring to

the TIPD visit. Examples include:

* the availability of new technology

Bear in mind just how long opportunities might last and how the group may

take best advantage of them.

8. List Threats

The opposite of Opportunities - which may, with a shift of emphasis or

perception, have an adverse impact.

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Weighing threats against opportunities is not a reason to indulge in pessimism;

it is rather a question of considering how possible negative experience may be

limited or eliminated. The same factors may emerge as both a threat and an

opportunity, for example, Information Technology. Most external factors are in

fact challenges, and whether the groups perceives them as opportunities or

threats is often a valuable indicator of morale.

9. Evaluate listed ideas against Objectives

With the lists compiled, sort and group facts and ideas in relation to the

objectives. It may be necessary for the SWOT participants to select their five

most important items from the list in order to gain a wider view. Clarity of

objectives is key to this process, as evaluation and elimination will be

necessary to cull the wheat from the chaff. Although some aspects may require

further information or research, a clear picture should, at this stage, start to

emerge in response to the objectives.

10. Carry your findings forward

Make sure that the SWOT analysis is used in subsequent planning. Revisit your

findings at suitable time intervals e.g. on return from you visit to check that

they are still valid.

Dos and don'ts for SWOT analysis

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Do

* Be analytical and specific.

* Record all thoughts and ideas in stages 5-8.

* Be selective in the final evaluation.

* Choose the right people for the exercise.

* Choose a suitable SWOT leader or facilitator.

Don't

* Try to disguise weaknesses.

* Merely list errors and mistakes.

* Lose sight of external influences and trends.

* Allow the SWOT to become a blame-laying exercise.

* Ignore the outcomes at later stages of the planning process.

2.1 SWOT ANALYSIS TEMPLET

Subject of SWOT analysis:

strengths Advantages of

proposition? Capabilities? Competitive

advantages? USP's (unique selling

weaknesses

Disadvantages of proposition?

Gaps in capabilities? Lack of competitive strength? Reputation, presence and

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points)? Resources, Assets,

People? Experience, knowledge,

data? Financial reserves, likely

returns? Marketing - reach,

distribution, awareness? Innovative aspects? Location and

geographical? Price, value, quality? Accreditations,

qualifications, certifications?

Processes, systems, IT, communications?

Cultural, attitudinal, behavioural?

Management cover, succession?

reach? Financials? Own known vulnerabilities? Timescales, deadlines and

pressures? Cashflow, start-up cash-

drain? Continuity, supply chain

robustness? Effects on core activities,

distraction? Reliability of data, plan

predictability? Morale, commitment,

leadership? Accreditations, etc? Processes and systems, etc?

Management cover, succession?

opportunities

Market developments? Competitors'

vulnerabilities? Industry or lifestyle

trends? Technology

development and innovation?

Global influences? New markets, vertical,

horizontal? Niche target markets? Geographical, export,

import? New USP's? Tactics - surprise, major

contracts, etc? Business and product

development? Information and

research?

threats

Political effects? Legislative effects? Environmental effects? IT developments? Competitor intentions -

various? Market demand? New technologies, services,

ideas? Vital contracts and partners? Sustaining internal

capabilities? Obstacles faced? Insurmountable weaknesses? Loss of key staff? Sustainable financial

backing? Economy - home, abroad?

Seasonality, weather effects?

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Partnerships, agencies, distribution?

Volumes, production, economies?

Seasonal, weather, fashion influences?

2.2 SWOT ANALYSIS EXAMPLE

This SWOT analysis example is based on an imaginary situation. The

scenario is based on a business-to-business manufacturing company, who

historically rely on distributors to take their products to the end user

market. The opportunity, and therefore the subject for the SWOT analysis,

is for the manufacturer to create a new company of its own to distribute

its products direct to certain end-user sectors, which are not being

covered or developed by its normal distributors.

Subject of SWOT analysis example: the creation of own distributor company to access new end-user sectors not currently being developed.

strengths End-user sales control and

direction. Right products, quality and

reliability. Superior product

performance vs competitors. Better product life and

durability. Spare manufacturing

capacity. Some staff have

weaknesses

Customer lists not tested. Some gaps in range for

certain sectors. We would be a small player. No direct marketing

experience. We cannot supply end-users

abroad. Need more sales people. Limited budget.

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experience of end-user sector.

Have customer lists. Direct delivery capability. Product innovations

ongoing. Can serve from existing

sites. Products have required

accreditations. Processes and IT should

cope.

Management is committed and confident.

No pilot or trial done yet. Don't have a detailed plan

yet. Delivery-staff need training. Customer service staff need

training. Processes and systems, etc

Management cover insufficient.

opportunities

Could develop new products.

Local competitors have poor products.

Profit margins will be good. End-users respond to new

ideas. Could extend to overseas. New specialist

applications. Can surprise competitors. Support core business

economies.

Could seek better supplier deals.

threats

Legislation could impact. Environmental effects would

favour larger competitors. Existing core business

distribution risk. Market demand very

seasonal. Retention of key staff critical. Could distract from core

business. Possible negative publicity.

Vulnerable to reactive attack by major competitors.

2.3 EVIDENCE ON THE USE OF SWOT

SWOT analysis may limit the strategies considered in the evaluation. J. Scott

Armstrong notes that "people who use SWOT might conclude that they have

done an adequate job of planning and ignore such sensible things as defining

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the firm's objectives or calculating ROI for alternate strategies." Findings from

Menon et al. (1999) and Hill and Westbrook (1997) have shown that SWOT

may harm performance. As an alternative to SWOT, Armstrong describes a 5-

step approach alternative that leads to better corporate performance.

2.4 USE OF SWOT ANALYSIS

The usefulness of SWOT analysis is not limited to profit-seeking organizations.

SWOT analysis may be used in any decision-making situation when a desired

end-state (objective) has been defined. Examples include: non-profit

organizations, governmental units, and individuals. SWOT analysis may also be

used in pre-crisis planning and preventive crisis management. SWOT analysis

may also be used in creating a recommendation during a viability study.

2.5 CORPORATE PLANNING

As part of the development of strategies and plans to enable the organization

to achieve its objectives, then that organization will use a systematic/rigorous

process known as corporate planning. SWOT alongside PEST/PESTLE can be

used as a basis for the analysis of business and environmental factors.

Set objectives – defining what the organization is going to do

Environmental scanning

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o Internal appraisals of the organization's SWOT, this needs to

include an assessment of the present situation as well as a

portfolio of products/services and an analysis of the

product/service life cycle

Analysis of existing strategies, this should determine relevance

from the results of an internal/external appraisal. This may

include gap analysis which will look at environmental factors

Strategic Issues defined – key factors in the development of a

corporate plan which needs to be addressed by the organization

Develop new/revised strategies – revised analysis of strategic

issues may mean the objectives need to change

Establish critical success factors – the achievement of objectives

and strategy implementation

Preparation of operational, resource, projects plans for strategy

implementation

Monitoring results – mapping against plans, taking corrective

action which may mean amending objectives/strategies.

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2.6 MARKETING

In many competitor analyses, marketers build detailed profiles of each

competitor in the market, focusing especially on their relative competitive

strengths and weaknesses using SWOT analysis. Marketing managers will

examine each competitor's cost structure, sources of profits, resources and

competencies, competitive positioning and product differentiation, degree of

vertical integration, historical responses to industry developments, and other

factors.

Marketing management often finds it necessary to invest in research to collect

the data required to perform accurate marketing analysis. Accordingly,

management often conducts market research (alternately marketing research)

to obtain this information. Marketers employ a variety of techniques to

conduct market research, but some of the more common include:

Qualitative marketing research, such as focus groups

Quantitative marketing research, such as statistical surveys

Experimental techniques such as test markets

Observational techniques such as ethnographic (on-site)

observation

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Marketing managers may also design and oversee various

environmental scanning and competitive intelligence processes to

help identify trends and inform the company's marketing analysis.

Using SWOT to analyse the market position of a small management consultancy with

specialism in HRM.

Strengths Weaknesses Opportunities Threats

Reputation in marketplace

Shortage of consultants at operating level rather than partner level

Well established position with a well defined market niche.

Large consultancies operating at a minor level

Expertise at partner level in HRM consultancy

Unable to deal with multi-disciplinary assignments because of size or lack of ability

Identified market for consultancy in areas other than HRM

Other small consultancies looking to invade the marketplace

Track record – successful assignments

2.7 BUSINESS SWOT ANALYSIS

What makes SWOT particularly powerful is that, with a little thought, it can

help you uncover opportunities that you are well placed to exploit. And by

understanding the weaknesses of your business, you can manage and

eliminate threats that would otherwise catch you unawares.

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More than this, by looking at yourself and your competitors using the SWOT

framework, you can start to craft a strategy that helps you distinguish yourself

from your competitors, so that you can compete successfully in your market.

2.8 PROBLEMS WITH SWOT ANALYSIS

The greatest strength of SWOT is also its greatest weakness: flexibility. Because

of the flexibility the SWOT analysis can be used in a variety of situations, such

as developing a career plan, as we've discussed in a previous article.

But this flexibility means that there can be a number of irregularities in the

data. To overcome this, you can add the following to your SWOT analysis:

Personal Experience

How do you personally fit into the SWOT analysis? Your attitudes, experiences,

skills, beliefs all have an impact on the SWOT. Also make note of any biases

you might have.

The Proper Order

Sometimes the marketing manager will accidentally reverse opportunities and

strengths and threats and weaknesses.

The difference between internal strengths and weaknesses and external

strengths and weaknesses can be difficult to spot.

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For example, in the case of global warming, one could mistake the

environmental movement as a threat rather than as an opportunity.

Weighting

It can be helpful to use percentages while weighing the factors of the SWOT

analysis. For example, Threat A = 15%, Threat B = 80%, Threat C = 5%. Make

sure it adds up to 100%.

Emphasize Detail

Details, explanations and justifications are often omitted from the SWOT

analysis. Instead, SWOT analysis reports often just contain lists of single words.

For example, under opportunities one might find the single word "technology."

This one word doesn't tell the reader very much. A description like the

following would be much more informative:

'Technology makes it possible for marketers to communicate via mobile phone

right up until the point of purchase. This gives the opportunity of a competitive

advantage for our company.'

Writing out detailed descriptions will assist you when deciding upon how best

to weight each of your elements.

Rank and Prioritize

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Once you write out the details and you've weighed the elements and assigned

the appropriate percentages, you can then give your SWOT analysis some

strategic meaning. In other words, you can begin to select those factors that

will be the most important as you create your marketing strategy.

This will be a mix of strengths, weaknesses, opportunities and threats. You

should rank them highest to lowest. Then you should prioritize those with the

highest rank.

For example: if Opportunity C = 50%, Opportunity A = 35%, and Opportunity B

= 15% - your marketing plan should pursue Opportunity C first, and

Opportunity B last.

It is important to focus primarily on opportunities because your business

should be market oriented. Then you'll match strengths to opportunities and

look for a fit. If there are any gaps between current strengths and future

opportunities you should address those.

Also, try to rephrase threats as opportunities (as with the above global

warming and climate change example) and address weaknesses so that they

become strengths.

Perform a "gap analysis" to determine where you are now and where you want

to be. Come up with strategies to bridge the gap between them.

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CHAPTER THREE

RESEARCH METHODS AND PROCEDURES

3.1 RESEARCH DESIGNThe research method selected for the study is a

combination of a survey and an industrial study. The

survey research method is described hereunder that:

(i) It is a design in which primary data is gathered from

members of the sample that represents a specific

population;

(ii) It is a design in which a structure and systematic research

instrument like a questionnaire or an interview schedule is

utilized together with the primary data;

(ii) It is a method in which the researcher manipulates no

explanatory variables because they have already occurred

and so they cannot be manipulated;

(iii) Data are got directly from the subjects;

The subjects give the data the natural settings of their

workplaces;

38

(iv) The answers of the respondents are assumed to be largely

unaffected of the content in which they are brought;

(v) The impacts of the confounding factors are “controlled”

statistically; and

(vi) The aim of the research may span from the exploration

phenomena to hypotheses testing (stone 1995).

The survey research method has some merit, which are to

be articulated hereunder: In the survey research method,

the sample of the respondents are selected in such a way

as to make it low due to the utilization of big sample

sizes, which results in generally low sample errors.

The survey research method also has the merit that data

collection takes place in the “natural” settings of the

workplace rather than an activated laboratory. Data are

got directly from the respondents. The advantage that the

survey yields data that suggests new hypothesis is very

illuminating. There is also the merit that a set of

systematic data collection instruments such as

questionnaire interview schedules and observation

39

gadgets can either be used alone or in conjunction with

other instruments (stone, 1995).

3.2 SAMPLING

Spiegel (1992) observes that sampling theory is a study of

the relationship existing between a population or universe

and the samples drawn from it. The population in this

study is from the senior junior staff of the firms. In order to

make conclusions of sample theory and statistical

references to be valid, a sample must be selected as to

be representative of the population (Spiegel,1992). One

way in which a representative sample may be got, is by

the process of stratified random sampling. In this research

work, the technique of simple random sampling is used to

select the sample of 100 respondents from each group of

the personnel, making a total sample size of 200.

The list of all senior and junior staff of the firm is from the

personnel department of the company. The numbers were

written on a piece of paper, put in a basket and the papers

were folded to cover the numbers and one of the pieces of

40

paper was selected at a time without replacing it and any

name corresponding to the number becomes a number of

the sample. This method of sampling without replacement

was done until the sample of 100 respondents per group

of personnel was arrived at.

3.3 Population

The population, in this study is the totality of the senior

and junior staff of GONEL SYSTEMS LIMITED. PTI ROAD

EFFURUN.

The sample size is 200 and this number of respondents

was chosen from the population. The rationale for

studying a sample rather than the population includes

that:

1. Most empirical research work in the social science

involves studying a sample in place of the population.

2. Statistical Laws reveal that statistics composed

from the sample data are usually reasonably accurate.

3. Luckily, it is usually possible to estimate the level of

confidence that can be placed on the results.

41

We should note that above is only possible if the

probability sample size is large enough.

3.4 DATA COLLECTION

Questionnaire

As earlier stated, the primary data collection instrument in

this study is the questionnaire. In the questionnaire

method of primary data collection, heavy dependence is

placed on verbal reports from the subjects to get

information on the earnings per share and standard set.

The questionnaire has a lot of merits. It needs less skill to

administer. Questionnaire can be administered to a big

number of individuals at the same time. Also with a

specific research budget, it is usually possible to cover a

broader area. The impersonal nature of a questionnaire,

its structure and standardized wording, its order of

question, its standardized instructions for recording

answers might make one to conclude that it offers some

uniformity from one measurement occasion to another

(Selltiz et al, 1976).

42

Another merit of questionnaire is that subjects may have a

bigger confidence in their anonymity, and thus feel freer

to express views they feel might be disapproved.

Another attribute of the questionnaire that is sometimes,

though not always desirable is that it might place less

pressure on the subjects for immediate response (Selltiz et

al, 1976).

The questionnaire also has some demerits. It has noted

that for purpose of giving dependable responses to a

questionnaire, respondents must be considerably

educated. Thus one of the demerits of the usual

questionnaire is that it is appropriate only for with a

considerable amount of education. There is also demerit

that subject may be reluctant and unable.

To report on the particular subject matter. Also, if a

subject misinterprets a question or give his or her answer

in a batting manner, there is often a little that can be done

to ameliorate the situation. In a questionnaire, the

information the researcher gets is limited to the fixed

43

alternative answer format, when a specific answer is not

available, it can lead to error (Selltiz, 1976).

There is also limitation of memory in reporting on past

facts. The researcher is not a policeman that can compel

answers. That is, the information may not be readily

accessible to subject and thus the subject may be

reluctant to put forth enough alternative information that

he or she is only barely conscious of (Selltiz et al, 1996).

In this research project, a structured and undisguised

questionnaire is utilized which is made up of two parts

namely, the personal data section and the section on the

data on the actual subject matter of the work. The

questionnaire was undisguised in the sense that the

purpose of the data collection which was to collect primary

data for writing up the researcher’s HND project was made

know to the 200 respondents. The questionnaire was

structured in the sense the questions are logically

sequenced and are to be asked to the respondents in the

same manner and no follow up questions are to be

44

allowed. Some of the questions are of the fixed alternative

answer format type.

Ten (10) of the questions have yes or no answers,

Ten (10) of the questions have alternative answer for the

respondents to tick.

The structured questionnaire has the merit that it yields

data that is easier to analysis than data produced by an

unstructured questionnaire. Also the structured nature

diminishes both researcher’s and research instrument

biases. It however has the demerit that the rigidity of the

research instrument diminishes the amount of information

that could be got.

Interview

The method of communication of the research instrument

is by means of the personal interview. The method has the

merit that it produces a better sample of the population

than either mail or the telephone methods. It also has the

merit that it gives a very high completion and response

rates. It has the merit that the interview has a bigger

45

sensitively misunderstandings by the respondents and

gives a chance for clarification of misunderstood

questions. It has the merit that it is a very feasible method

(Selltiz et al, 1976). The personal interview method has

the demerit that it is more costly than the mail or the

telephone methods of communication of a questionnaire.

Observations

In addition to questionnaire and face-to face interviews,

observation was also carried out. This was to enable the

researcher to witness by herself the officers of this firm

and to interact with these people.

3.5 FIELD WORK

The researcher and three other field data collectors did

the fieldwork. The field data collectors were other

classmates also offering the Part-time HND program, who

have also offered research methodology. They had no

problem gaining entrance into the office under

consideration since one of them has a friend working

there. They were to be trained by the researcher on how

46

to greet the respondents and how to tick the questionnaire

correctly and honestly.

3.6 DESCRIPTION OF DATA PRESENTATION AND

ANALYSIS TOOLS

The data presentation tools are simple bar charts,

histograms, and pictorial tables. The most important parts

of a table include;

(a) Table numbers

(b) Title of the table

(c) Caption

(d) Stub or the designation of the rows and columns

(e) The body of the table.

(f) The head note or prefatory note or explanatory just

before the title.

(g) Source note, which refers to the literally or scientific

source of the table (Mills and Walter 1995)

47

Anyiwe (1994) has observed that a table has the following

merits over a prose information that;

(f) A table ensure an easy location of the required

figure;

(g) Comparisons are easily made utilizing a table than a

prose information;

(h) Patterns or trends within the figures which cannot be

visualized in the prose information can be revealed and

better depicted by a table; and

A table is more concise and takes up a less space than a

prose formation:

The data is to be analysed by means of percentage, cross

tabulation and the chi-square test of population

proportions for testing the two hypothesis. Percentages

express the ratio of two sets of data to a common base of

100. The researcher made us of the computer program

called SPSS (statistical package for social science) to carry

out the computation of the hypothesis testing.

48

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 INTRODUCTION

In the previous chapter, the research methods and

procedures have been handled. In this chapter the data

presentation and analysis are to be done. The data is to be 49

presented by means of tables, two simple bar charts, one

histogram and one pie chart to make it amenable for

further analysis. By analysis is meant the act of noting

relationship and aggregating the set of variables with

similar attributes and also breaking the unit of their

components (Mills and Walters 1995).

In this research work, the research accepts the contention

of Podsakoff and Dalton (1995) that the factual

information from the data can be used as a basis for

reasoning, calculation and discussion.

Apart from the heading above, the other headings in this

chapter include:

Data Presentation,

Percentage analysis

Cross-tabulated analysis

Hypothesis testing

50

4.2 DATA PRESENTATION

TABLE 4.1

THE SUMMARY OF THE PERSONAL DATA

OF THE RESPONDENTS

51

1

2

3

4

SEX

Male

Female

Total

Marital Status

Married

Single

Total

AGE

21-30 years

31-40 years

41-50 years

51-60 years

Total

HIGHER

EDUCATIONAL

QUALIFICATION

DIPLOMA

OND

HND

FREQUENCY

150

50

200

130

70

200

90

90

10

10

200

10

30

80

Angles

subtended

in degree

18

54

144

36

52

FIRST DEGREE

SECOND DEGREE

NIM

TOTAL

20

40

20

200

72

36

360

The marital statuses of the 200 respondents it is found that

130 of them are married while 70 of them are single. For

the ages of the 200 respondents they are 21-30 years, 31-

40 years, 40-50 years, 51-60 years with frequency of 90,10

respectively. For the educational qualification of the 200

respondents they are diploma, OND, HND, First Degree,

Second Degree, NIM. and they have frequencies of 10, 30,

80, 20, 40 and 20 respectively.

Figure 4.1 below shows the simple bar chart of the data on

the sex of the respondents.

FIGURE 4.1: THE SIMPLE BAR CHART OF THE DATA ON THE SEX OF THE RESPONDENTS

GENDER OF THE RESPONDENTS

53

160

140

120

100

80

60

40

20

0

-

-

-

-

-

-

-

-

-

MAIL FEMALE

Freq

uenc

y

TABLE 2. GENDER OF THE RESPONDENTS

Frequency

percentage

Valid Percent

Cumulative Percent

MAIL 150 75.0 75.0 75.0

FEMALE

50 25.0 25.0 100.0

Total 200 100.0 100.0

54

Gender

Source: from data in table 1 (generated from SPSS) statistical package for social science.

From figure 4.1 above, it is shown that male respondents

have the modal frequency of 150 out of the 200

respondents while the female respondents have the

frequency of 50 of them.

Figure 4.2 below shows the simple bar chart of the data on

the marital statuses of the respondents.

FIGURE 4.2: THE SIMPLE BAR CHART OF THE DATA ON THE MARITAL STATUSES OF THE RESPONDENTS

55

140

120

100

80

60

40

20

0

-

-

-

-

-

-

-

-MARRIED SINGLE

Freq

uenc

y

TABLE 4.3. MARITAL STATUS OF THE RESPONDENTS

Status frequency

Percentage

Valid Percent

Cumulative Percent

MARRIED 130 65.0 65.0 65.0

SINGLE 70 35.0 35.0 100.0

Total 200 100.0 100.0

From figure 4.2 above, it is shown that the married

respondents have the modal frequency of 130 out of the

200 respondents while the single respondents have the

frequency of 70 of them.

FIGURE 4.3: THE HISTOGRAM OF THE DATA ON THE AGES OF THE RESPONDENTS.

AGES OF THE RESPONDENTS

56

Marital status

020

4060

8010

0

1.0 2.0 3.0 4.0

Freq

uenc

y

Age group

TABLE 4. AGES OF THE RESPONDENTS

SOURCE: From the data in Table 1.

57

Categories

(years)

Frequency Percentage Valid

Percentage

Cumulative

Percent

21 TO 30 90 45.0 45.0 45.0

31 TO 40 90 45.0 45.0 90.0

41 TO 50 10 5.0 5.0 95.0

From figure 4.3 above, it is shown that the age classes

limit are 20.5-30.5 years, 30.5-40.5 years, 40.5-50.5 years

and 50.5-60.5 years with frequencies of 90, 90, 10, and 10

out of 200 respectively. This shows that this is bi-modal

distribution as the age classes of 20.5-30.5 years and 30.

5-40.5 years have a frequency of 10.

Figure 4.4 below shows the pie chart of the data on the

highest educational qualifications of the 200 respondents.

FIG.4.4 THE PIE CHART OF THE DATA ON THE HIGHEST EDUCATIONAL QUALIFICATIONS OF THE 200 RESPONDENTS

58

Educational level

Frequency Percentage Valid Percentage

Cumulative Percentage

DIPLOMA 10 5.0 5.0 5.0

OND 30 15.0 15.0 20.0

HND 80 40.0 40.0 60.0

FIRST DEGREE

20 10.0 10.0 70.0

SECOND DEGREE

40 20.0 20.0 90.0

NIM 20 10.0 10.0 100.0

Total 200 100.0 100.0

15%5%

10%

80%

10%

20%

FIRST DEGREE

OND DIPLOMA

FIRST DEGREE

OND

SECOND DEGREE

HND

TABLE 4. 5 EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

SOURCE: from the data in table 1.

From figure 4.4 above, the Educational Qualifications are

Diploma, O.N.D, First Degree, Second Degree and NIM and

the subtended angles in degrees are equal to 180, 540,

1440, 360, 720 and 360 and respectively at the center of the

circle.

4.3 CROSS-TABULATED ANALYSIS

Table bellow show the analysis of the statuses of the 200

respondents

TABLE 6. CROSS- TABULATION 1

59

DIPLOMA

OND

HND

FIRST

DEGREE

SECOND

DEGREE

NIM

Total

The usefulness of SWOT analysis is not limited to profit

making organisations

YES NO DON’T

KNOW

NO

ANSWERTotal

6

19

60

-

31

21

100

2

31

10

43

2

9

11

2

7

9

39

12

19

91

26

31

21

200

939

The above table shows that the total of 100 respondents

(out of 200 said YES. This proved that A company does not

die but continue to exist until its name is dissolved

through a legal process.

TABLE 7. Cross-tabulation 2

The above table indicates that A company may own

property distinct from the property of its members, 104

respondents out of 200 said yes. While 40 did not agree

with the fact.

4.4 HYPOTHESIS TESTING

In attempting to arrive at decisions about the population,

on the basis of sample information, it is necessary to

make assumptions or guesses about the population

parameter involved. Such an assumption is called

statistical hypothesis, which may or may not be true. The

60

DIPLOMA 10 10

OND 19 19

HND 14 30 47 91

FIRST

DEGREE 10 9 19

SECOND

DEGREE 40 40

NIM 21 21

Total 104 40 47 9 200

The greatest strength of SWOT is the greatest weakness: flexibility

YES NODON’T

KNOW

NO

ANSWERTotal

procedure, which enables the researcher to design on the

basis, is sample regards whether a hypothesis is true or

not is called test of hypothesis or test of significance.

The null hypothesis asserts that there is no significant

difference between the statistics and the population

parameters and what ever is observed difference is there,

is merely due to fluctuations in sampling from the same

population. Null hypothesis is thereby denoted by the

symbol H0. Any hypothesis, which contradicts the H0, is

called an alternate hypothesis and is denoted by the

symbol H1. The researcher used chi-square analysis.

CHI-SQUARE TEST

The c is one of the simplest and most widely used non-

parametric test in statistical work. It makes no

assumptions about the population being sampled. The

quantity c describes the magnitude of discrepancy

between theory and observation i.e. with the help of c test

we can know whether a given discrepancy between theory

and observation can be attributed to chance or whether it

61

results from the inadequacy of the theory to fit the

observed facts. If c is zero, it means that the observed and

expected frequencies completely coincide. The greater the

value of c the greater will be the discrepancy between

observed and expected frequencies.

The formula for computing chi-square is –

c =(O-E)2/E

Where,O=Observed frequency

E=Expected or theoretical frequency

4.5 SOFTWARE USED FOR DATA ANALYSIS:

For the data analysis and the interpretation, the

researcher has adopted advanced version of SPSS

(statistical package for social science). This application

software has facilitated the researcher to construct the

frequency table, various types of charts and to find out the

valid percentage responses from the sample. By this

automated data analysis it has minimized the researcher’s

62

time constraints and reduced human error and give also

accurate outlay of information.

Chi-Square Test (1)

The usefulness of SWOT analysis is not limited to profit making organisations

Observed

F

Expected

F

Residual Decision

YES

NO

DON’T

KNOW

NO

ANSWER

Total

100

43

39

18

200

50.0

50.0

50.0

50.0

50.0

-7.0

-11.0

-32.0

Accept

Reject

Reject

Reject

Chi-Square Test (2)

The greatest strength of SWOT is the greatest weakness: flexibility

63

Residuals

The observed value of the dependent variable minus the

value predicated by the regression equation, for each

case. Large absolute values for the residuals indicate that

the observed values are very different from the predicted

values.

SOURCE: From the questionnaires administered.

The formulated hypothesis that is subject to statistical test

is at 5% level of significance in testing hypothesis, the

calculated value of the test statistics is usually compared

with tables of value. The critical values of the test

64

Observed

F

Expected

F

Residual Decision

YES

NO

DON’T

KNOW

NO

ANSWER

Total

104

40

47

9

200

50.0

50.0

50.0

50.0

54.0

-10.0

-3.0

-41.0

Accept

Reject

Reject

Reject

statistics serve as criterion value. It afforded the basis for

rejecting the null hypothesis is a function of the value of

the tested statistic.

Reject the null hypothesis if the calculated value of the

test statistic is greater than the critical value.

Accept the null hypothesis if the calculated value of the

test statistic is less than the critical value.

TEST STATISTICS

note: df = degree of freedom

65

The usefulness of SWOT

analysis is not limited

to profit making

organisations

The greatest strength of SWOT is the

greatest weakness: flexibility

Chi-Square

df

73.880

3

94.120

3

4.6 SUMMARY OF RESULT

Level of significance……….0.05

Critical value………………………43.0

Calculated value……………………73.880

From the above analysis, it could be seen that in the first

test, the usefulness of SWOT analysis is not limited to

profit making organisations, the calculated value is

greater than the critical value so we reject the hypothesis.

In the second test which state that the greatest strength

of SWOT is the greatest weakness: flexibility, the level of

significance is 0.05, the critical value is 44 while the

calculated value from the test statistics table is 94.120.

Looking the data above, it shows very clear that the

calculated value is greater than the critical value so we

reject the hypothesis.

66

CHAPTER FIVE

FINDINGS, SUMMARY AND CONCLUSION

1.1 FINDINGS

The researcher discovered during the course of the research that:

-SWOT analysis is a tool for auditing an organization and its

environment.

-It is the first stage of planning and helps marketers to focus on key

issues.

67

-SWOT stands for strengths, weaknesses, opportunities, and

threats.

-Strengths and weaknesses are internal factors. Opportunities and

threats are external factors.

-You can use a SWOT analysis to identify and analyze the Strengths

and Weaknesses of your organization, as well as the Opportunities and

Threats revealed by the information you have gathered on the external

environment.

- To develop a plan that takes into consideration many different internal

and external factors, and maximizes the potential of the strengths and

opportunities while minimizing the impact of the weaknesses and

threats.

5.2 SUMMARY

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.

68

The SWOT analysis provides information that is helpful in matching the firm's

resources and capabilities to the competitive environment in which it operates.

As such, it is instrumental in strategy formulation and selection. The following

diagram shows how a SWOT analysis fits into an environmental scan:

SWOT Analysis Framework

Environmental Scan

/ \

Internal Analysis External Analysis

/ \ / \

Strengths Weaknesses Opportunities Threats

SWOT Matrix

5.3 CONCLUSION

SWOT Analysis is a strategic planning method used to evaluate the

Strengths, Weaknesses, Opportunities, and Threats involved in a project

or in a business venture. It involves specifying the objective of the

business venture or project and identifying the internal and external

factors that are favorable and unfavorable to achieving that objective.

The technique is credited to Albert Humphrey, who led a convention at

69

Stanford University in the 1960s and 1970s using data from Fortune 500

companies.

A SWOT analysis must first start with defining a desired end state or

objective. A SWOT analysis may be incorporated into the strategic

planning model. An example of a strategic planning technique that

incorporates an objective-driven SWOT analysis is Strategic Creative

Analysis (SCAN). Strategic Planning, including SWOT and SCAN

analysis, has been the subject of much research.

Strengths: attributes of the person or company that are

helpful to achieving the objective.

Weaknesses: attributes of the person or company that are

harmful to achieving the objective.

Opportunities: external conditions that are helpful to

achieving the objective.

Threats: external conditions which could do damage to the

objective.

Identification of SWOTs is essential because subsequent steps in the

process of planning for achievement of the selected objective may be

derived from the SWOTs.

70

First, the decision makers have to determine whether the objective is

attainable, given the SWOTs. If the objective is NOT attainable a

different objective must be selected and the process repeated.

The SWOT analysis is often used in academia to highlight and identify

strengths, weaknesses, opportunities and threats. It is particularly helpful

in identifying areas for development

71