Page 75 - DEDU503_EDUCATIONAL_MANAGEMENT_ENGLISH

Kulwinder Pal, Lovely Professional University Unit 4: SWOT Analysis: Concept and Process

Unit 4: SWOT Analysis: Concept and Process Notes

CONTENTS
Objectives

Introduction
4.1 Meaning of SWOT Analysis
4.2 SWOT: Essential Tool for Strategic Planning
4.3 Application of SWOT Analysis in Formulating Strategies
4.4 Pros and Cons of using SWOT in Strategic Planning
4.5 Summary
4.6 Keywords
4.7 Review Questions
4.8 Further Readings

Objectives

The Objectives of this unit can be summarized as below:
• to know the mean of SWOT
• to know SWOT as an essential tool for strategic planning.
• to know SWOT analysis is used to formulate strategies.
• to know Pros and Cons of using SWOT in strategic planning.

Introduction

SWOT Analysis is widely used in the business world but not exposed to many employees. They are
used by high level management staffs. Unit is about a brief concepts of SWOT Analysis aimed to
provide a basic understanding of SWOT Analysis.

4.1 Meaning of SWOT Analysis

S.W.O.T. is an abbreviation for Strengths, Weaknesses, Opportunities and Threats. So, what constitute
these factors in our real life applications?
As a general guideline, S.W.O.T. May be categorized into two factors. They are the commonly
known external and internal factors.
The external factors refer to elements that are normally outside your own control and most of the
time deal with external environmental factors. Example factors are: political, economic, societal and
technological in short commonly known as P.E.S.T. Within the S.W.O.T., Opportunities and threats
belongs to this category.
On the other hand, Internal factor refers to factors that are internal in nature and normally within
your own control. Examples of factors are capabilities related factors such as production capability,
market knowledge, management of distributors etc. Within the S.W.O.T., Strengths and Weaknesses
are internal factors.
In real life application, how do you differential between all the four factors. To explain, it with a
situation as below:

LOVELY PROFESSIONAL UNIVERSITY 69