SWOT Analysis: Essential technique for managers | MIT School of Distance Education - PowerPoint PPT Presentation

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SWOT Analysis: Essential technique for managers | MIT School of Distance Education

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SWOT Analysis is one of the vital tools of strategic management. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. A manager is responsible to identify the strengths and weaknesses of the organisation and work on them. At MIT School of Distance Education (MIT-SDE), we train all future managers so that they can create effective strategies. We offer management courses in different specializations including IT, HR, operations, marketing, finance, and many more. Our courses are equivalent to correspondence MBA but better than it in the sense that our syllabus is up-to-date. So, apply for our distance MBA equivalent courses and enhance your employability. – PowerPoint PPT presentation

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Title: SWOT Analysis: Essential technique for managers | MIT School of Distance Education


1
MIT School of Distance Education
  • SWOT Analysis Essential technique for managers

2
  • The business environment is dynamic. Changes in
    the ecosystem affect the functioning as well as
    the performance of the business. Various internal
    and external factors influence the business
    environment. So, these need to be controlled. It
    is the task of managers to carry out strategic
    management so that the business can sustain
    itself amidst all the changes. For this managers
    rely on SWOT analysis. It is a widespread
    technique used by managers.

3
What is a SWOT analysis?
  • SWOT stands for Strengths, Weaknesses,
    Opportunities and Threats. The strengths and
    weaknesses of a business can be identified by
    analyzing its internal environment, while
    opportunities and threats can be identified from
    its external environment.

4
  • For a business, STRENGTH is its inherent capacity
    which enables it to gain a strategic advantage
    over its competitors. For example, Hindustan
    Unilever Limited has its circulation network
    country-wide, which acts as its strength.
  • WEAKNESS is the intrinsic factors which restrict
    the business to gain an advantage over its
    competitors. For example, family feuds or fund
    shortage for a business can act as its
    disadvantage.

5
  • OPPORTUNITY is a lucrative condition that can be
    gained from an external environment. The
    opportunities that are seized add to the strength
    of a business and bestow a competitive advantage.
    For example, demand growth, globalization and
    liberalization act as opportunities for a company.

6
  • THREAT is a hostile condition in the external
    environment which may act as a danger for
    business. For example, increasing competitors in
    the market or the addition of more multinational
    companies in India can be a threat for the Indian
    firms.

7
Significance of SWOT analysis
  • SWOT Analysis is one of the vital tools of
    strategic management. It is needed for strategic
    formulation and selection. It helps the firm in
    knowing the difference between the things it can
    do and the things it is allowed to do. A strategy
    becomes effective when the business focuses more
    on the capitalization of the opportunities and
    counterbalances any threat which may affect it
    badly.

8
  • Furthermore, it allows a business to gain a
    competitive advantage of its strength and work on
    its weaknesses. Some of the examples of strength,
    weakness opportunities and threats are given
    below

9
STRENGTHS
  • Patents
  • A strong brand portfolio
  • Favourable access to the distribution network
  • Goodwill in the market
  • Strong brand name

10
WEAKNESSES
  • Weak brand name
  • High cost
  • Dispersed manufacturing locations
  • No patent
  • Lack of goodwill in the market

11
OPPORTUNITIES
  • Increased penetrations especially in rural areas
  • Frequency of usage in all categories
  • New innovations
  • Brand growth by fulfilling customers needs

12
THREATS
  • Increased trade barriers
  • Fluctuation in fiscal benefits
  • Arrival of spurious products
  • Low-priced competition
  • Continuous change in the customers taste and
    preferences
  • Regular change in the oil prices

13
Closing Note
  • A manager is responsible to identify the
    strengths and weaknesses of the organisation and
    work on them. He should also ensure that the
    organization can capitalize on opportunities and
    shun threats. Through SWOT analysis, the managers
    can easily create effective strategies that can
    drive a business towards success. So, the
    managers must be trained to follow effectively
    follow this technique.

14
  • At MIT School of Distance Education (MIT-SDE),
    we train all future managers so that they can
    create effective strategies. We offer management
    courses in different specialisations including
    IT, HR, operations, marketing, finance, and many
    more. Our courses are equivalent
    to correspondence MBA but better than it in the
    sense that our syllabus is up-to-date.

15
  • Our course includes a rich mix of theory and
    practical that provides industry-specific
    knowledge to the candidates. So, apply for
    our distance MBA equivalent courses and enhance
    your employability.

16
  • THANK YOU
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