Page 85 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 5: Organisational Appraisal: Internal Assessment 1

Notes
Table 5.1: SWOT Analysis
Strengths Weaknesses
Strong brand image Weak distribution network
High quality products Narrow product lines
Latest technology Rising costs
High intellectual capital Poor marketing plan
Cordial industrial relations
Opportunities Threats
New markets Increase in competition
Profitable new acquisitions Barriers to entry
R&D skills in new areas Change in consumer tastes
New businesses New or substitute products
Threat of takeover

2. Conclusion:
(a) Draw conclusions about the company’s overall situation
3. Translation: Translate the conclusions into strategic actions by acting on them:

(a) Match the company’s strategy to its strengths and opportunities
(b) Correct important weaknesses
(c) Defend against external threats
In devising a SWOT analysis, there are several factors that will enhance the quality of the
material:
1. Keep it brief, pages of analysis are usually not required.
2. Relate strengths and weaknesses, wherever possible, to industry key factors for success.
3. Strengths and weaknesses should also be stated in competitive terms, that is, in comparison
with competitors.
4. Statements should be specific and avoid blandness.
5. Analysis should reflect the gap, that is, where the company wishes to be and where it is
now.
6. It is important to be realistic about the strengths and weaknesses of one’s own and
competitive organisations.

Probably the biggest mistake that is commonly made in SWOT analysis is to provide a long list
of points but little logic, argument and evidence. A short list with each point well argued is
more likely to be convincing.

Did u know? What is TOWS Matrix?
TOWS matrix is just an extension of SWOT matrix. TOWS stand for threats, opportunities,
weaknesses and strengths. This matrix was proposed by Heinz Weihrich as a strategy
formulation – matching tool.

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