SWOT AnalysisAn important Step for strategic

planning

Assoc. Prof. Dr. Wongsa LaohasiriwongKhon Kaen University

Personal Objectives What I need to do?

Strategic InitiativesWhat we need to do ?

Strategic InitiativesWhat we need to do ?

Strategy

Vision and Goals

Core Value

MissionSWOT Analysis

StrategyFormulation

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Steps for strategic planning

Set working group Collect data for analyzing the capability of the department

Internal factor Strength WeaknessExternal factor Opportunity ThreatAsk for Stakeholders’

expectations

What the department wants to be What are the goals What strategic issues have to be developed

What the department has to do to accomplish visions and goals Define KPI, targets

Implement strategies in term of projects

Setup step Step 1 Step 2 Step 3 Step 4

Project setupSWOT

analysis

Vision,strategicissues, goals

Strategies Action plan

Organizational Diagnosis

• SWOT Analysis

• 7’s Mackincy Model

• Balanced Scorecard

• Six Box model

SWOT Analysis SWOT Analysis

1. Strength2. Weakness3. Opportunity4. Threat

1. Strength2. Weakness3. Opportunity4. Threat

SWOT

• 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.

TOWS Analysis TOWS Analysis 1. Start from T = threat To know the situation 2. Follow by O = Opportunity What are opportunity to survive, achievement, on what conditions?

3. Then analyses W = Weakness What should be improved?4. Then S = Strength What we have to be used for improvement

1. Start from T = threat To know the situation 2. Follow by O = Opportunity What are opportunity to survive, achievement, on what conditions?

3. Then analyses W = Weakness What should be improved?4. Then S = Strength What we have to be used for improvement

Department/ OrganisationDepartment/ Organisation

W (7S)

W (7S)

S (7S)

S (7S)

T (PESTEL

I)

T (PESTEL

I)

O (PESTEL

I)

O (PESTEL

I)

PEST ANALYSIS

PEST ANALYSIS

•P : Politics•E : Economics•S : Social•T : Technologies

•P : Politics•E : Economics•S : Social•T : Technologies

PESTELI ANALYSISPESTELI ANALYSIS

•P : Politics •E : Economics •S : Social •T : Technologies •E : Ecology •L : Legal •I : Industry

•P : Politics •E : Economics •S : Social •T : Technologies •E : Ecology •L : Legal •I : Industry

Table for Opportunities and threats of Environment outside the organization

Issues Threats Opportunity

Politic (policy/regulation) Macro economic Social and culture Technology Client/ customer negotiation Suppliers negotiation Old competitors competency New competitors potential New product, service characteristics

The McKinsey 7-S FrameworkThe McKinsey 7-S Framework

Structure

Strategy Systems

Shared Value

Skill

Staffs

Style

Robert Waterman, Tom Peters and Julien Philips 

Waterman Jr., Robert H., Peters, Thomas J., and Julien R. Phillips. 1980. "STRUCTURE IS NOT ORGANIZATION." Business Horizons 23, no. 3: 14

McKinsey 7S Model • Strategy Plans for the allocation of a firm's scarce resources,

over time, to reach identified goals. Environment, competition, customers.

• Structure The way the organization's units relate to each other:

centralized, functional divisions (top-down); decentralized (the trend in larger organizations); matrix, network, holding, etc.

• Systems The procedures, processes and routines that

characterize how important work is to be done: financial systems; hiring, promotion and performance appraisal systems; information systems.

McKinsey 7S Model • Skills Distinctive capabilities of personnel or of the

organization as a whole.• Staff Numbers and types of personnel within the

organization.• Style Cultural style of the organization and how key

managers behave in achieving the organization’s goals.

• Shared Value The interconnecting centre of McKinsey's model is:

Shared Values. What the organization stands for and what it believes in. Central beliefs and attitudes.

Marvin Weisbord Six-Box Model (Weisbord’s Model)

• Purposes: What 'businesses' are we in? • Structure: How do we divide up the work? • Relationships: How do we manage conflict (c

oordinate) among people? With our technologies?

• Rewards: Is there an incentive for doing all that needs doing?

• Leadership: Is someone keeping the boxes in balance?

• Helpful mechanisms: Have we adequate coordinating technologies?

http://www.reflectlearn.org/discover/the-marvin-weisbord-six-box-model-weisbord%E2%80%99s-model

Issues Weakness Strength

1. Resource system• Human resource system• Capital system or

process factor• IT system

2. Financial or result of development

• Value added on quality of life

• People acceptance• utilization

Table for Strength and weakness

Items Weakness Strength

3. Customer or clients• Better• Cheaper• Faster4. Management process• Production• Marketing• Service5. Organizational

development• Leadership• Learning

organization• Adaptation

SWOT MATRIXIdentify1: Outside: Opportunity /

Threat - 5 10 items2 . Inside: Strength / Weakness

- 5 10 items- . Scenario planning or

SWOT Matrix as following

OutsideInside

StrengthsWeaknesse

s

Opportunities

Threats

SO Strategi

es

WO Strategi

esST

Strategies

WT Strategi

es

WeaknessStrength

Opportunity

Threat

Growth

StarsStabilityQuestion MarksQuestion Marks

StabilityCash cows

Retrenchment

Dogs

TOWS Matrix

• SO : use its strengths to take advantage of opportunities

• ST : consider a strength to avoid threat

• WO : take advantage of opportunities by overcoming weaknesses

• WT : defensive and act to minimize weaknesses and avoid threats

Balanced Scorecard

Vision&

Strategy

Vision&

Strategy

Financial Perspective

Learning &Growth

Perspective

Customer Perspective

Internal Process

Perspective

Balanced ScorecardBalanced Scorecard 4 Perspectives 4 Perspectives

1. Customer Perspective.2. Financial Perspective.3. Internal Process Perspective.4. Learning and Growth Perspective.

1. Customer Perspective.2. Financial Perspective.3. Internal Process Perspective.4. Learning and Growth Perspective.

BalancedBalancedBased on Vision of the organizationBased on Vision of the organization