Learning Objectives

By the end of the lesson, you will be able to:

• Identify the four factors of a SWOT• Explain their different features• Understand how they relate to each other• Give an example of each factor• Construct a simple SWOT

What is a SWOT Analysis?

• Planning•Matching• Dynamic

Strengths

•Well known brand name• Innovative products• Excellent customer service• Quality manufacturing• Niche market

Weaknesses

• Lack of expertise• No differentiation• Poor location• Substandard products• Damage to reputation

Opportunities

• Developing and new markets•Mergers and alliances• Demise of competitors• Legislation• Changing trends

Threats

• New competitors• Price wars• Legislation• Social changes

Helpful Harmful

Internal Strengths(maintain and

develop)

Weaknesses(overcome)

External Opportunities(exploit)

Threats(minimise)

Source - www.strategicmanagementinsight.com

Now it’s your turn!

Strengths - McDonalds

• Brand recognition• Global operation• Localised menus• Strategic store locations• Large market share• Efficient preparation methods

Weaknesses - McDonalds

• Unhealthy menu• Low differentiation• Declining market share• High employee turnover

Opportunities - McDonalds

• Breakfast market• Links with sporting events• Specialist menus• New markets in emerging nations• Expansion of their CSR activities

Threats - McDonalds

• Negative publicity• Legal action over additives• Competition• Changing social attitudes • Legislation• Economic downturn

What have we learnt?

• What?

• Why?

• Apply.

For next week……

• PEST Analysis