SWOT Analysis - 2 Shankar A. Iyer, PMP Prin Engr/Prog Mgr Exelis Corporation First, a quick recap …. • Created as SOFT by Albert Humphrey at SRI in 60’s – What is good at present is Satisfactory; Good in the future is Opportunity; Bad in the present is Fault; Bad in the future is Threat • Became SWOT – Structured planning method – Fundamental activity of self-preservation and growth – 4A: Aim, Assess, Activate, Apply; get your strategies USED • • • • Use Strength Stop Weakness Exploit Opportunity Defend against Threat In the business world .. • SWOT Analysis can be used to look at the – Product or Service – Package – Price – Placement – Promotion – Political/Legal – Professional/Public Relations – People S, W, O & T can be … • Inherent or acquired in any of the P’s • Temporary, short term, long term or permanent • Unique, rare, common or ubiquitous • Surmountable or insurmountable • Transferable or nontransferable So, what is the difference? • Traditional/simplistic view: SW are what we have (internal factors), OT (external factors) are what we face/deal with . • But reality is more complex/nuanced – Our own S or W can create O or T • S can create O or T and W can create O or T • Therefore, it is important to assess/refine assessment objectively and regularly • Circumstances change, people change, everything changes – change is the only constant in life. You might want to check this out … http://ctb.ku.edu/en/tablecontents/sub_section_main_1049.aspx This helpful article in The Community Tool Box addresses the following: • • • • • What is a SWOT analysis and why should you use one? When do you use SWOT? What are the elements of a SWOT analysis? How do you create a SWOT analysis? How do you use your SWOT analysis? It is not a briefing if it has no colors and charts …….. • So, you saw set of slides are from Microsoft, templates for doing SWOT Analyses. • You can get them here: http://office.microsoft.com/en-us/templates/swotanalysis-examples-TC101875476.aspx?AxInstalled=1&c=0 Take away from first session … • SWOT Analysis needs to be an essential, conscious exercise in everything that we do – by becoming so, we will be just a bit faster, better, higher, longer, cheaper – we will be more competitive. • In the next session on this topic – in March 2013, we will look at several examples – from the days of mythical yore to 21st century political campaigns. • Please: – Fill in Evaluation Forms – Collect Your PDU Forms – Come in for the second session next month Your feedback …… • General Summary of the Evaluation: 1. 2. 3. 4. 29/33 indicated all 4 or 5 ratings. 4/33 had some 3 ratings. Nothing lower than a 3 in all the ratings. 15 evaluations had written comments:· More examples More tables Can’t wait for follow-on session Good facility Skip 11:30-12 networking; engaging speaker Relevant stories Integrate examples Diagrams/pictures are memorable Try to end on time Looking forward to Part 2 More audience interaction More examples Difficulty understanding speaker Don’t talk like a professor Pace was slow SWOT Analysis – Epic Tale • Ramayana – dates back to events in 7300-7200 BC • 24,000 verses, one of the longest of epic poems • There are several instances in this epic where there are discussions relating to assessing the S & W of one’s self & opponents, and assessing O & T to determine – The right objective/course of action – The optimal way to pursue it • Example: Demon Mareecha’s extended discussion with the demon king Ravana Gist of this epic SWOT Ravana’s Objective: Exact Revenge and Fulfill Lust Ravana: S & O Mareecha: W & T Mighty king of demons with unbeatable power/armies Superhuman abilities Isolated, well-guarded island nation Divine boons do NOT cover mortals No experience with Rama’s prowess as an archer Alienated all divine beings with arrogant behavior – all wish your downfall Infatuation with women has caused you troubles before Your magical skills will make this easy Abducting Sita is apt revenge for loss of my brothers and insult to my sister Rama is mere human being – exiled, with little support; easy target Loves wife dearly, her loss will finish him; thus both my objectives will be realized with least effort My death is certain; yours and that of all in our race will follow eventually Blot on your name – coward, abductor of helpless women Success of your enemies at no cost The recent election P & G Head & Shoulders • CP Test Marketed Cascade – a new shampoo • P & G wanted to stop them! Strengths: superior branding/marketing skills, channel relations, strong image, deep pockets, excellent R & D capabilities, manufacturing abilities Opportunity: Immediately create concept and promote it, develop actual product quickly and launch nationally ahead of competitor • P & G created H & S name and started national promotion! Developed and distributed product nationally before CP could do so with Cascade An example from the WWW – Dell http://som.csudh.edu/depts/cis/meyadat/ClassesPage/CIS502/casestudies/SWOT%20Analysis%2 0Example.htm • In the mid-1990s, Dell Computer used a SWOT analysis to create a strong business strategy that has helped it become a very strong competitor in its industry value chain. • Dell identified its strengths in selling directly to customers and in designing its computers and other products to reduce manufacturing costs. It acknowledged the weakness of having no relationships with local computer dealers. • Dell faced threats from competitors such as Compaq and IBM, both of which had much stronger brand names and reputations for quality at that time. • Dell identified an opportunity by noting that its customers were becoming more knowledgeable about computers and could specify exactly what they wanted without having Dell salespersons answer questions or develop configurations for them. It also saw the internet as potential marketing tool. Dell SWOT Strengths Weaknesses Sell directly to consumers Keep costs below competitors’ costs No strong relationships with computer retailers Opportunities Threats Consumer desire for one-stop shopping Consumers know what they want to buy Internet could be a powerful marketing tool Competitors have stronger brand names Competitors have strong relationships with computer retailers Dell decided to offer customized computers built to order and sold over the phone, and eventually, over the internet. Dell’s strategy capitalized on its strengths and avoiding relying on a dealer network. The brand and quality threats posed by Compaq and IBM were lessoned by dell’s ability to deliver higher perceived quality because each computer was custom made for each buyer. SWOT in Sports – NCAA Basketball – VCU Rams in 2013 NCAA Tournament Strengths Weaknesses Shaka Smart Passionate, driven team members Experience playing and doing well in the tournament Strong fan base, supportive university system Less powerful conference, even with move to Atlantic 10 Lack the depth of experience that traditional powerhouses have Opportunities Threats Ranked opponents tend to underestimate our abilities Move to A-10 has made us more visible, improves recruiting power Competitors have stronger recruiting power Speed overwhelmed by physical strength of opponents players? A resource with lots of examples .. • http://www.cps.ca.gov/WorkforcePlanning/do cuments/SampleCompletedSWOTAnalysis.pdf • Caveat: missing from the nice examples above are the objectives associated with the SWOT analyses, and the course of action pursued as a result. In conclusion ….. • SWOT Analysis – integral to self-preservation and growth • As with all tools, proper use/misuse possible • Proper use empowers you to focus on right strategic and tactical choices for action • Please: – Fill in Evaluation Forms – Collect Your PDU Forms • THANK YOU VERY MUCH.