Swot analysis of the finances of a manufacturing enterprise example. Coursework: SWOT-analysis of the enterprise on the example of a representative office in

You are the head of the enterprise, but do you know everything about it? Are you ready to voice a clear plan for the further development of your own business? Difficult to answer? Then it is necessary to put into practice already well-proven marketing research. They have already helped millions of entrepreneurs to find the right solution. One of the main technologies is SWOT analysis.

What it is?

The abbreviation SWOT is an acronym for the following English words:

• Strengths - strengths or advantages of the organization;
• Weaknesses - weak points or shortcomings;
• Opportunities - opportunities or external factors that, if properly applied, will create additional benefits for the company;
• Threats - threats or possible circumstances that can harm the company.

A standard SWOT analysis is precisely a comprehensive assessment of the company's activities, and not only its strengths, but also its weaknesses. But in the terminology adopted in this analysis, they are called parties, respectively strong and weak. An assessment is made not only of probable threats from outside, but also of favorable opportunities. At the same time, the obtained results are necessarily compared with the indicators of the most strategically important competing firms.

Conducting a SWOT analysis helps answer questions such as:

• Does the company make full use of personal strengths, as well as its distinctive features in the implementation of its own strategy?
• Which of the weak qualities of the company need to be corrected accordingly?
• Which of the potential opportunities offer a real chance of success if all possible resources are used and the qualifications of the firm are taken into account?
• What likely threats should the manager pay attention to, and what actions should be taken in this case?

Marketers recommend choosing the time period for carrying out a SWOT analysis when the direction in which the business is planned to develop in the future is formulated, and the period for determining the list of goals and setting tasks.

swot analysis matrix

During the analysis, specially designed templates are used, which are tables called SWOT-matrices. Which of them will be used during the implementation is a purely individual choice. It is worth noting that the results, regardless of the selected template, are completely identical.

Any swot analysis matrix filled in according to a specific pattern. The cells that describe the strengths of the enterprise are filled in first. Let's move on to its weaknesses. These two columns help describe the company's microenvironment.

To display the macro environment, you will need to fill in the two remaining columns. One of them should record opportunities, that is, the likely benefits that the company will be able to receive in the conditions of the current market, if there are no significant changes. And in the last column of the matrix, threats are recorded - those factors that can interfere with the development of the company's strengths and the use of the opportunities provided.

Microenvironment

Strengths include those moments where the company has significantly succeeded and what distinguishes it from competitors. Here you should also describe your competitive advantages, but be objective. These cannot be just allegations. They must be supported by certain indicators.

Such advantages may include:

• unique resources of the company;
• personnel with a high qualification level;
• quality products;
• brand popularity.

The weaknesses of the company include factors that drive it into a more unfavorable framework in comparison with potential competitors. As an example of a company's weakness, one can point to a limited range of goods produced or services provided, a not very good reputation, little funding, or a relatively poor level of customer service.

macro environment

As you remember, the macro environment in the SWOT analysis is presented in the form of probable opportunities or potential threats.

Opportunities should include the most favorable circumstances, using which the company receives additional benefits. It is the opportunities that contribute to the development of the strengths of the enterprise.

Threats are probable events, in the event of which the enterprise may find itself in not very favorable conditions for further development. Examples of such events may be the emergence of new competing companies on the market, an increase in tax rates, a change in demand from buyers.

Additional materials

The swot analysis matrix for a more complete and truthful filling will require additional information. Let's consider this point in more detail. All available data will be required for the following categories:

1. Management

It contains all the information related to the construction of the work of the entire company. These are the qualifications of the employees of the enterprise, the connections that determine the level of interaction between all departments, etc.

1. Production

In this category, an assessment is made of production capacities, the quality of existing equipment, and the degree of its wear. The quality of manufactured goods, the availability of patent or license documentation, if required, the cost of the manufactured goods are also considered. Additionally, the reliability of partners performing the role of suppliers, the level of service, etc. are evaluated.

1. Finance.

This is the most important category that requires detailed consideration. It is here that the clearest gradation of the strengths and weaknesses of the business in question is observed. These are the costs of the production process, the availability and speed of turnover of cash capital, the financial stability of the enterprise and its profitability.

1. Innovation.

How often are customers provided with an updated product list? What is the level of quality and how fast is the payback of capital investments? This subparagraph should contain answers to all the questions posed.

1. Marketing

• consumer reactions to manufactured goods;
• your brand awareness;
• the range of products presented by the enterprise;
• pricing policy;
• the effectiveness of ongoing advertising campaigns;
• additional services offered by the company.

Rules for performing a SWOT analysis

In order to avoid possible mistakes in practice and get the maximum benefit from the conducted marketing research, strict adherence to several rules is required.

As far as possible, try to narrow down the field of activity in which the analysis will be carried out. If you perform this procedure simultaneously for all the activities of the enterprise, then the data obtained will be too general and absolutely useless from a practical point of view. Focusing the analytic process on a company's position in a particular market segment will help provide more specific data.

In the process of filling in the matrix columns in macro and micro environments, be correct in drawing conclusions regarding strengths/weaknesses and opportunities/threats for certain factors. Weak or strong qualities are represented by internal characteristics of the company. Whereas the second pair characterize the situation in a in a given time period, and cannot be regulated by management.

Qualitative performance of the analysis is possible only when all the data were completely objective. This strategic analysis should be made on the basis of the comprehensive information provided. The study cannot be entrusted to one specialist, since the information received may well be distorted by his personal subjective perception. In this marketing research, it is necessary to take into account the point of view of each functional unit of the enterprise. All data entered in the SWOT matrix must be confirmed by the available facts or the results of previous research activities.

It is absolutely unacceptable to use lengthy formulations or the possibility of its double interpretation. The more specifically the factor is formulated, the more clear will be its influence in the future on the activities of the company as a whole. And accordingly, the results obtained after the completion of the analysis will be of the greatest value.

Weaknesses of SWOT Analysis

SWOT analysis is just a simple tool for organizing information. This marketing procedure does not provide any specific answers or clear recommendations. It only helps to more adequately assess the main factors and, with a certain degree of probability, predict the occurrence of certain events. Formulating any recommendations based on the data received - this procedure is already within the competence of the analyst.

In addition, the apparent simplicity of this strategic analysis is very misleading. The veracity of the result, and, accordingly, the development of further transformations are highly dependent on the completeness and quality of the information provided. To really get the most real data, either the participation of an expert who is able to assess the current state and the likely path for the further development of the market will be required, or it will be necessary to carry out a very painstaking work of collecting and then analyzing the information received in order to achieve this understanding.

Errors that may be made when filling in the matrix table are not detected during the analysis. Therefore, the addition of an extra factor or, on the contrary, the loss of an important one or other inaccuracies lead to an erroneous conclusion, and hence an incorrect development of a further strategy.

SWOT analysis example

The analysis example shown is for demonstration purposes only. It shows the entire sequence of steps that will help you perform a SWOT analysis.

Determination of strengths / weaknesses (sides)

First of all, analyze all possible options. Each of the directions should contain at least 3 parameters that helped to assess the competitiveness of the business.

For example, let's take such a direction as "the appearance of the product." To analyze it, you will need to answer questions such as:

• how much better/worse is the appearance of the packaging than the competing company;
• convenience of packing in comparison with a competing company is better/worse;
• how much better/worse the package design is compared to a competitor, etc.

We check the importance of identified strengths/weaknesses

Not the entire list from the first paragraph will be required to fill in the matrix. Now you should exclude minor items. To choose the right parameters, you should evaluate the impact of each in terms of potential customer satisfaction, as well as the profit generated.

The results of such a check will help to exclude parameters that play a minor role. The final rating of the microenvironment will be fully prepared.

Identifying likely growth paths

At this stage, you will need to write potential options that can . Two questions will help you with this:

1. how the company can increase the level of sales;
2. What are the ways to reduce production costs?

Make a comprehensive list of opportunities that will help your business grow. The following options are examples:

• new sales territory;
• expansion of the range;
• influx of new consumers, etc.

Next, an assessment is made, and opportunities that do not have a decisive impact on profits and customer satisfaction are excluded. Having fully analyzed the entire list received, we cross out opportunities that do not have a strong impact on profits and customer satisfaction.

Identifying Potential Threats

This section should list options for potential threats. For example, why customers may refuse to purchase an enterprise product:

• change in habitual lifestyle;
• decrease in the income level of the population;
• changed requirements for product quality, etc.

Then we exclude threats that do not threaten the development of the enterprise over the next 5 years.

Filling the matrix

Now that all the data has been received, we fill in the standard template. At the same time, the rating of all indicators is necessarily preserved. Further, based on the SWOT information, recommendations are made for the further development of the enterprise.

You can find a detailed swot-analysis, strategy and methods of conducting on the example of a particular enterprise in this article:

You can also watch the compilation of a swot analysis on the video.

An excerpt from the book by ID Peter "A Practical Guide to Market Segmentation"

A3.1. Introduction

Any segmentation begins with a comprehensive study of the market situation in which the company operates, and an assessment of the types of opportunities and threats that it may face. The starting point for such an overview is the SWOT analysis, one of the most common types of analysis in marketing. Simply put, SWOT analysis allows you to identify and structure the strengths and weaknesses of the company, as well as potential opportunities and threats. This is achieved due to the fact that managers must compare the internal strengths and weaknesses of their company with the opportunities that the market gives them. Based on the quality of compliance, a conclusion is made about the direction in which the organization should develop its business and, ultimately, the distribution of resources by segments is determined.

This chapter will look at the strengths, weaknesses, opportunities and threats in relation to the segments or markets being studied. Determining the relative importance of each of the listed SWOT components requires an extensive range of inputs. After studying this chapter, you will build a SWOT analysis for each of your segments.

Objects within each element (for example, strengths) will be ranked in order of importance: the most important strength will come first, then the second, and so on.

A3.2. Rules for conducting a SWOT analysis

The simplest form of presenting the results of a SWOT analysis is shown in fig. A3.1: list strengths, weaknesses, opportunities and threats. Because of its conceptual simplicity, SWOT has become easily applicable to managers and just as prone to misuse. It does not require extensive databases or formal training. Anyone with even a little knowledge of the company and an understanding of the market can put together a simple SWOT. On the other hand, the inherent simplicity of analysis can lead to hasty and meaningless conclusions, full of such vague and ambiguous concepts as "product performance", "modern equipment", "prices". In addition, users sometimes forget about objectivity and rely on outdated or unreliable information.

Rice. A3.1. SWOT analysis

To avoid these mistakes and get the most out of your SWOT analysis, follow these simple rules.

Rule 1 Carefully define the scope of each SWOT analysis. Companies often conduct a general analysis that covers their entire business. Most likely, it will be too general and useless for managers who are interested in opportunities in specific markets or segments. Focusing the SWOT analysis on, for example, a specific segment ensures that the strengths, weaknesses, opportunities, and threats that are most important to it are identified.

Rule 2 Understand the differences between SWOT elements: strengths, weaknesses, opportunities and threats. Strengths and weaknesses are internal features of the company, therefore, under its control. Opportunities and threats are related to the characteristics of the market environment and are not subject to the influence of the organization.

Rule 3 Strengths and weaknesses can only be considered as such if they are perceived as such by buyers. Only the most relevant strengths and weaknesses should be included in the analysis. Remember that they must be determined in the light of competitors' offerings. A strong side will only be strong when the market sees it as such. For example, the quality of a product will only be a strength if it performs better than competitors' products. And finally, there can be a lot of such strengths and weaknesses, so you won’t understand which of them are the main ones. To avoid this, strengths and weaknesses should be ranked according to their importance in the eyes of buyers.

Rule 4 Be objective and use versatile input information. Of course, it is not always possible to conduct an analysis based on the results of extensive marketing research, but, on the other hand, one cannot entrust it to one person, since it will not be as accurate and deep as an analysis carried out in the form of a group discussion and exchange of ideas. It is important to understand that a SWOT analysis is not just a listing of managers' suspicions. It should be based as much as possible on objective facts and research data.

Rule 5 Avoid long and ambiguous statements. Too often, SWOT analysis is weakened precisely because it includes such statements, which most likely mean nothing to most buyers. The more precise the formulations, the more useful the analysis will be. This is confirmed by Fig. A3.2. To note buyers will perceive as an ill-defined, meaningless statement. This element needs to be broken down into several components that are more significant from the point of view of the buyer: modern equipment ...

In a similar way, one can analyze other statements from Fig. A3.2. Some of the components received will be relevant to buyers, some will not. The bottom line is that you need to include only those that are perceived by the market and buyers as important.

Rice. A3.2. An example of a bad SWOT analysis

A3.3. Elements of the internal environment: strengths and weaknesses

Under the strengths and weaknesses can hide a wide variety of aspects of the company. The categories most frequently included in the analysis are listed below. Each SWOT is unique and may include one or two of them, or even all at once. Each element, depending on the perception of buyers, can be either a strength or a weakness.

• Marketing.
  Product
  Pricing
  Promotion
  Marketing Information/Intelligence
  Service/staff
  Distribution/Distributors
  Trademarks and positioning
• Engineering and development of new products. The closer the connection between marketing and technical department becomes, the more important these elements will be. For example, a strong relationship between the new product development team and the marketing department allows direct use of customer feedback in the design of new products.
• Operational activity.
  Manufacturing/engineering
  Sales and Marketing
  Processing orders/transactions
• Staff.
  Research and development
  Distributors
  Marketing
  Sales
  After-sales service/service
  Service/customer service

This includes skills, wages and bonuses, training and development, motivation, working conditions of people, staff turnover. All of these elements are central to the successful implementation of a customer-focused marketing philosophy and marketing strategy.

• Management. Sensitive and often controversial, but sometimes requiring changes, management structures directly determine the success of the implementation of a marketing strategy. Such aspects should be reflected in the analysis.
• Company resources. Resources determine the availability of people and finance, and thus affect the company's ability to capitalize on specific opportunities.

A3.4. Elements of the external environment: opportunities and threats

Opportunities and threats are outside the organization's control. Thus, they can be considered as external, related to the elements of the market environment. The environmental analysis, which should already be done by now (see analysis 2), can serve as an excellent starting point for this part of the SWOT analysis. Key elements to consider include:

• legislative/regulatory/political forces. The actions of the authorities in the form of policy enforcement, as well as legislative and regulatory requirements that companies must comply with;
• social forces (culture). A company is directly affected when dissatisfied customers put pressure on organizations whose activities are perceived as unacceptable;
• technological forces. Technological abilities that help a company achieve its goals affect the products that are offered to customers and their response;
• economic situation. The influence of the general state of the economy, under the influence of which consumer demand and spending habits are formed;
• competition. The nature and extent of the competitive threat. The following points deserve special attention:

Intensity of competition
The threat of new competitors
Buyer needs in the market
Bargaining power of buyers, distributors, suppliers
Competitiveness
Pressure from substitute products

A3.5. Data logging for SWOT analysis

For each of the markets or segments considered, list the most important (most relevant/affecting the business) elements across all four categories: Strengths, Weaknesses, Opportunities, and Threats (see Table A3.1). In each of them, the wording should be ordered by importance: first comes threat number one, and so on. SWOT should be as focused as possible: for example, if necessary, build a separate table for each new market or group of buyers. It makes no sense to list everything possible and impossible: limit yourself to only those elements that have the greatest impact on your company. Be objective. Can you back up your claims with evidence (quotes, letters, industry statistics, press reports, government publications, dealer reports, customer comments)? Remember that the analysis should be focused on the customer, not inside the organization. As you review your next application, it is helpful to ask yourself the following questions.

• Are we sure that this is actually the case?
• How sure are we?
• How do we know?
• Is it possible that this will change soon?
• Does this statement have any relevance/meaning/meaning to our customers?
• Have we considered this position in relation to competitors?

In practice, a SWOT analysis is often compiled for each leading competitor and for individual markets. This reveals the company's relative strengths and weaknesses, its ability to deal with threats and seize opportunities. This exercise is useful in determining the attractiveness of existing opportunities and evaluating the firm's ability to pursue them.

Table A3.1 SWOT analysis

What should be done:

• Rank statements in order of opportunity.
• Include only major statements/aspects.
• Have evidence to support them.
• Strengths and weaknesses must be considered in relation to competitors.
• Strengths and weaknesses are internal aspects.
• Opportunities and threats are external aspects of the market environment.

What are the main conclusions that can be drawn from this?

A3.6. Summary

In this chapter, we looked at conducting a SWOT analysis for each market or segment under consideration. This approach is simple, yet it allows the company to examine the opportunities in the market and weigh its ability to pursue them. At the same time, threats that can undermine the position of the firm are also studied. Strengths and weaknesses are viewed from the buyer's point of view, which provides a real basis for resource allocation decisions and helps the company make the most of its opportunities.

Checklist: Strengths, Weaknesses, Opportunities and Threats
We recommend that you read and complete the following checklist.

1. What you need to know
Before moving on to the next chapter, you should complete a SWOT analysis for each market. To do this, it is necessary to study the internal strengths and weaknesses of the company and identify the opportunities and threats that exist in its external market environment. Items in each of the four categories must be ranked. The result of the analysis should be conclusions for the company. If you serve more than one market, you must complete the appropriate forms for each market.

If you have not yet collected the information you need to do this, we strongly recommend that you return to this chapter as soon as possible, and certainly before you select target segments and draw up positioning strategies.

2. The table must be filled
Record your progress: did you complete the table?

A 3.1: SWOT analysis

Be prepared to return to the table if/when more information becomes available.

3. Collected information
This chapter requires the following types of information. Indicate at what stage of collecting relevant information you are.

From this article you will learn:

• What types of SWOT analysis method exist
• When should you not use SWOT analysis?

The SWOT analysis technique has become very popular due to its simplicity and wide applicability. It can be used to assess the likely consequences of rational decisions in almost any area: both in business when developing a company's development strategy, choosing a marketing policy, etc., and in private life. The SWOT analysis method assumes that before making a decision, the situation was studied and understood. Let's look at it in more detail.

What is the essence of the SWOT analysis method

SWOT analysis is a way to assess the current situation in the business and the prospects for its development, identifying four key aspects: Strengths - strengths, Weaknesses - weaknesses, Opportunities - opportunities and Threats - threats.

Two of them - strengths and weaknesses - characterize the state of the internal environment of the company at the time of the analysis. The remaining aspects - threats and opportunities - relate to the external environment in which the business operates and which the entrepreneur or head of the firm cannot directly influence.

The method of conducting a SWOT analysis allows you to describe the situation clearly and structured, to conclude whether the company is developing in the right direction, what risks should be protected from and how exactly to implement it, what is the potential of the enterprise.

The SWOT analysis method is based on four main questions:

1. What can a businessman (organization) do?
2. What would he like to do?
3. What is generally possible in the current conditions?
4. What actions are expected from the company by its environment – ​​clientele, partners, contractors?

By answering these questions, you can determine:

• advantages of the company, its trump cards that can be used in the development strategy;
• vulnerabilities that can be eliminated, compensated;
• prospects, open ways of development of the company;
• dangers and ways to protect yourself from them.

Why you need a SWOT analysis method

SWOT analysis is a simple and versatile method widely used in business and beyond. In business, when planning and developing a strategy, it can be used both separately and in conjunction with other marketing tools, which makes it very convenient for company managers and private entrepreneurs.

Outside of business, the SWOT analysis method allows you to identify priority areas for applying efforts (this applies to both professional and personal development), to find your true life goals and priorities in work and relationships.

In relation to business, SWOT analysis is used to:

• collecting, summarizing and analyzing information about competitors through Porter models, PEST and other marketing methods;
• creating a step-by-step plan for bringing the business strategy to life, working out its main directions and appointing persons responsible for the implementation;
• competitive intelligence (search for the strengths and weaknesses of competitors) to form an effective development strategy.

Thus, wherever it is necessary to highlight the strengths and weaknesses of something (commercial activity, enterprise, individual), there is a place for the SWOT analysis method. Its product can be both a business strategy and a program for professional or personal growth.

Types of SWOT analysis method

1. Express version of SWOT-analysis. It occurs most often and is used to detect the main strengths of the company and its vulnerabilities. External threats and opportunities are also identified. This type of method is the easiest to use and gives a clear result.
2. Summary SWOT analysis. It focuses on the accounting and systematization of the main indicators of business performance at the current moment and its prospects in the future. A summary SWOT analysis is good because it allows you to quantify the factors identified by other methods included in the strategic analysis toolkit, to form a strategy and action plan aimed at achieving the main goals of the company.
3. A mixed SWOT analysis is an option that combines the first two. There are at least three of its varieties, in which the factors of influence are structured in the form of tables and form a cross matrix. However, the analysis of these types does not give a quantitative assessment of certain indicators. Thanks to the summary SWOT, you can deeply explore the received data and come to an accurate result.

SWOT analysis method by example

The main matrix of the SWOT analysis is as follows:

Consider the following situation: an individual entrepreneur is going to sell small batches of pies to grandmothers (and they, in turn, will resell them to the final buyer).

Here is how you can apply the SWOT analysis method to it:

Note that if the target audience is, for example, schoolchildren who buy pies for themselves (and not grandmothers-traders), then the SWOT analysis must be carried out again, since the initial data have changed.

SWOT project analysis

First of all, decide what goals you are going to achieve through the method, what tasks you face. If the project is devoid of goals and non-specific, the SWOT analysis will fail: there will simply be no place to take the initial data from.

Find potential strengths in your future (or existing) business. Make a complete list of them and start analyzing each of them. What characteristics and features make your idea realistic and promising? Are the means and tools with which you intend to implement your strategy effective, and by what means? How good an entrepreneur (or leader) are you yourself? What resources and assets are available to you? What do you manage to do better than your competitors? In general, conduct an audit and evaluate your capabilities.

Then, using the same method, you need to analyze the shortcomings of the business project under consideration. What factors hinder the solution of urgent problems? What business skills do you personally lack and how can they be “pumped”? What is the main vulnerability of your enterprise and personally you as a person and leader? What factors should be avoided? What can prevent you from taking advantage of the opportunities and benefits to achieve your goals?

The next step in the SWOT analysis is to list the available prospects for your project. You probably already actively use some of these favorable environmental factors to promote and optimize your business, list them. Don't forget potential opportunities. Describe the market situation in your niche. Think about what tools, tools, methods and benefits can be applied to make your project unique and in demand.

After that, proceed to the description of existing external dangers and threats. Which of these factors are or could be preventing you from achieving your intended outcome? Is there a large number of your competitors, enemies, ill-wishers who can harm the business and prevent it from developing? In the SWOT analysis method, threats and opportunities are always related to the external environment, and strengths and weaknesses are always related to the project itself.

When all the lists are compiled, proceed to the formation of conclusions and conclusions. They should provide answers to a number of important questions about how to competently use their strong positions, how to eliminate shortcomings and problem areas, how to take advantage of the opportunities that have opened up in practice, how to minimize risks and avoid dangers.

Listing, cataloging and studying these four groups of factors is not the main part of the SWOT analysis method. The most important thing happens later, when the data is already collected and structured: finding ways to turn problems into advantages, make strengths out of weaknesses, and make external threats serve your business.

If at this stage it becomes clear what measures and steps need to be taken, be sure to plan them for the near future and actively begin to implement them.

Rules of the SWOT analysis method

SWOT analysis seems to be a simple, even primitive method, but in practice, building a matrix can be difficult. The problem lies in the quality of the initial data: if they are outdated, or initially unreliable (which often happens when we collect information about the external environment), or too abstract and generalized, then the method will not lead to the desired result.

Therefore, the practical application of SWOT analysis requires compliance with some important rules:

1. Limit the scope of the study to each of the quadrants. Analysis of the business as a whole will turn out to be too divorced from practice and, as a result, useless, because in order to develop a strategy, information is needed on very specific aspects of the functioning of the enterprise. It is worth focusing on each of them and subjecting them to a SWOT analysis.
2. Decide on the wording: what you will consider a strength, what a weakness, and what you will attribute to opportunities and risks. Internal factors - the strengths and weaknesses of the company - can be controlled directly, but it is impossible to influence external ones. Therefore, these areas - inside the business and outside it - must be clearly separated, and, for example, internal problems should not be written down as threats, and opportunities should not be considered strengths.
3. When analyzing advantages and vulnerabilities, look at your project from the outside, as a client or competitor. If something is an advantage for the consumer and motivates him to buy the company's products, then this is a strength.

If some services or product items offered by your company are more popular than similar products and services of competitors, this is also a business advantage. That is, both strength and weakness are determined by the market, and not by the manager-analyst's ideas about how to do it right. When the list of advantages and disadvantages grows too large, it is useful to rank them in order of importance (from the perspective of the consumer).

1. Use a variety of but reliable information sources. Try to be objective when conducting a SWOT analysis. The best option is to first carry out extensive market research, and then use this method, but this is not always available. However, you can conduct monitoring on your own (using questionnaires, analysis of publications about the company in the media, etc.).

This task should be done by several people, since the personal preferences of each significantly limit the scope of the parameters considered. In the course of collecting and analyzing data, it is desirable to exchange ideas and guesses so that the work can be done in groups.

1. Formulate your thoughts as clearly and specifically as possible, avoid ambiguity and unnecessary phrases. The quality of the application of SWOT analysis as a method depends on the accuracy and capacity of the formulations. For example, the term “modern equipment” is very vague: it can hide both new machines in the shops and new technologies for communicating with suppliers.

• identification of the dynamics of the position of the enterprise in the market environment, among competing firms;
• taking into account the results of a deeper analysis of the company's activities and building strategic plans in accordance with them;
• creation of several strategies of behavior in the market (for the most probable scenarios of development of events).

These can be options such as the elimination of threats (the third and fourth quadrants of the SWOT matrix), the continuation of the current course (without changes, since everything is fine anyway), the optimization of the use of resources and the development of reserves (the first and second quadrants).

1. A Brief History of SWOT
2. Why and when to conduct a SWOT analysis
3. S.W.O.T. Detailed analysis of the components
4. Actions based on the results of the SWOT analysis
5. Examples of successful and unsuccessful SWOT analysis
6. From SWOT to TOWS? How to deploy the algorithm and achieve the best results
7. SWOT Templates

What is SWOT?

SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats.

SWOT analysis is a methodological tool designed to help companies and their employees optimize productivity, increase competitiveness, maximize potential and minimize risks. The SWOT model helps to make better decisions - both large and small. It allows you to evaluate the effectiveness of actions - from the launch of a new product or service to a merger with another organization or the acquisition of a subsidiary. SWOT is a method that, when used correctly, produces only positive results.

The Fundamental Guide to SWOT Analysis was designed, written and designed by Justin Homer and Jackson Hille.

Justin Homer lectures at the University of California at Berkeley and will soon publish two books.

Jackson Hille is one of FormSwift's partners and is a recipient of a Special Achievement Award in American Studies from the University of California, Berkeley.

The manual contains all the information that a SWOT specialist needs. It describes examples of SWOT use by prominent companies (eg Dreamworks and Uber) and thoroughly examines all the components and ways to apply the analysis. There are free templates at the end. The guide will be useful to anyone and everyone, including creative start-up and entertainment executives, strategic planners at nonprofits and government organizations, and private entrepreneurs in the real estate or restaurant business.

Who is the guide for?

SWOT is a technique that can be used for any business goal, big or small. If you run a Fortune 500 company and are trying to determine the value of a special offer or are evaluating your position to chart your individual path, this guide will be a great help to you.

Why is guidance needed?

Your company is at risk! You risk freezing in place! Lack of movement can destroy any business, and SWOT analysis is an effective antidote. This guide reveals all its subtleties.

It is written in an accessible language and contains concise but effective examples. More importantly, it is backed by extensive research on the use of SWOT, published in leading business journals.

How to use the guide?

This guide discusses the SWOT method from a variety of perspectives that people with varying degrees of knowledge can understand.

If you are just getting started with SWOT, we recommend that you read the entire text from beginning to end to learn more about the history of the method and its scope.

If you are already familiar with SWOT, you can relearn the basics or scroll to the section you want (for example, about using the method in a certain type of organization). You may find our templates useful. Dispose of the guide at your discretion!

Brief summary and examples of using SWOT

In 1960, several American corporations launched a project at Stanford University to develop an improved method of strategic planning. This is how SWOT was born.

It is suitable for:

• rethinking the company's position in the market (Weaknesses, Threats - Disadvantages and Risks from competitors);
• determining the strengths of the company (Strengths - Benefits);
• search for new directions of development (Opportunities - Opportunities).

All this SWOT!

Although SWOT was "originally designed for business needs," "it can be used for the health and development of the community as a whole, and even for personal needs."

Below are examples of using SWOT analysis in a company that provides taxi services using a mobile application.

Uber + Lyft

SWOT example

Benefits

• The use of a special application for finding drivers and clients and a cashless payment system greatly simplifies the work process.
• Lack of staff and dispatchers
  reduces costs.
• Drivers use private vehicles, so the company has access to a huge fleet of vehicles that do not require maintenance.
• Drivers are in complete control of their schedule.

Weaknesses

• The business model is easy to copy.
• The use of GPS to track the location of drivers and customers poses a privacy risk.
• The flow of customers is unpredictable and changes rapidly.
• The company does not establish relationships with drivers, so the level of loyalty is extremely low.

Opportunity

In the following example, we'll look back at the inception of taxi companies using mobile apps.

Consider the impact that the emergence of Uber and Lyft has had on companies that provide services in the traditional way. The use of the latest technology has allowed them to easily penetrate the market.

They can expand and capture new sites (cities) or provide additional transportation services (for example, run school buses).

Risks

The use of mobile apps not only opened new opportunities for Uber and Lyft, but also created serious risks for existing companies that have not mastered the latest technologies.

SWOT is often misused to justify existing practices. If you are doing an analysis to find areas for development, you need to clearly identify all the shortcomings.

Comments on individual companies

Uber services are only available in some metropolitan areas, so the next step could be to reach smaller cities and suburbs. However, the main threat to Uber is the numerous complaints and proposals to legally ban the company's activities.

Dreamworks

DreamWorks has taken the lead in 3D animation production due to two main strengths - extensive reserves (like the Shrek franchise) and an attractive work environment suitable for creative workers.

Logan decided that a busy training schedule and a trip to an international tournament could provide the team with new opportunities for gaining experience, and the youth and potential injury of the players posed significant risks.

Restaurant: By adding online food ordering and delivery, a business could gain new opportunities, while opening new restaurants and changes in the cost of products (for example, an increase in the price of fish) would pose a serious threat to it.

Construction firm: In terms of new opportunities, the firm could study the city's plans to expand the public transportation system and see how this expansion would affect the scale of private and corporate construction.

And here we return to the basic postulate of SWOT again: analysis is only useful when you compare yourself with competitors.

Uber + Lyft

SWOT example

Let's go back to the Uber and Lyft example. The services themselves arose under the pressure of mobile technologies on traditional companies that provided taxi services. If any of them had recognized this Risk earlier, they would have realized that the mobile offering could enable customers to get from one point to another efficiently and quickly.

By turning a Risk into an Opportunity, a company could evaluate its Disadvantages in terms of the existing Risk (in this case, lack of investment in technology or underdevelopment of infrastructure for a mobile application), and then make a strategic plan to eliminate the Disadvantages and use the Advantages (in this case, experience full-time drivers, knowledge of routes, etc.) to get ahead of the competition.

1. Brief history of SWOT

SWOT analysis was the product of years of research conducted by Stanford University in the 1960s and 1970s. By the end of the 1950s, many American companies were frustrated by the lack of results from investments in strategic planning, so in 1960 some of them launched a project to develop new methods. This is how SWOT was born.

2. SWOT analysis

When to do a SWOT analysis

When should a SWOT analysis be done? SWOT analysis is useful in countless ways.

• Do you want to know how effective a new initiative, product or acquisition is?
• Do you need a solution to a specific business problem?
• Do you want to evaluate an existing and ongoing strategy?
• Do you have extra funds that you need to invest profitably?
• Are you a non-profit or government organization that has received a large grant or donation and you don't know how to spend the money?
• Do you have new competitors? Do you need to evaluate a potential merger with another organization?
• Do you want to more precisely formulate your mission or social significance?

If you answered yes to at least one question, SWOT analysis will definitely help you!

Ultimately, it will come in handy in any situation that requires assessing the current state of affairs in the market (Disadvantages and Risks), identifying strengths (Advantages) and development directions (Opportunities).

Why Conduct a SWOT Analysis

Why is SWOT needed? SWOT analysis gives the company the opportunity to accurately assess its position in its field. Members of the Health Promotion and Community Development Working Group at the University of Kansas point out that "knowledge of the situation facilitates effective strategic planning and better decision making."

"Simple and applicable in any context" SWOT analysis provides such information, so its results can be used to create a strategy that takes into account internal advantages and external opportunities and focuses on correcting (internal) shortcomings and eliminating (external) risks. Moreover, despite the fact that "originally SWOT was designed for business needs", "it can be used for the health and development of the community as a whole, and even for personal needs."

3. S.W.O.T. Detailed analysis of the components

Having determined the subject of analysis, you can begin to analyze all the components. SWOT consists of four components - Strengths, Weaknesses, Opportunities and Threats. All of them are divided into two categories - external and internal. The internal components include Advantages and Disadvantages, while the external components include Opportunities and Risks.

Internal		External
Benefits	Weaknesses	Opportunities	Risks

Advantages (Strengths) (Strengths)

Once you've identified your main research question (eg, "Should I add product X to my new line?"), try to articulate the benefits. Any organization must be stable and reliable. Charlie Ioannue defines advantages as "resources and manufacturing capabilities that can be used to gain competitive advantage" (Ioannue, SWOT Analysis - An Easy to Understand Guide, 47-49).

This definition brings to mind the most important aspect of Benefits evaluation, which is comparing yourself to your competitors. In other words, highlight the unique qualities of your company (eg long life, proven brand, low operating costs, high quality service, strong online presence, etc.) These will be your Benefits.

Weaknesses (Weaknesses)

After that, it is necessary to identify the existing shortcomings. Be honest with yourself. On the one hand, disadvantages are the absence of advantages. So, if some aspect of your business isn't a strength, it's most likely a weakness. Cash flow, brand awareness, marketing budget, distribution system, age of the company - you can find weaknesses in all of this. The main goal is to turn disadvantages into strengths, but this requires an honest recognition that the organization needs improvement.

Having considered the internal components (Advantages and Disadvantages), let's move on to the external ones (Opportunities and Risks). Opportunities and Risks interact with each other in the same way as Advantages and Disadvantages. They have similar (external) dynamics that allow them to be evaluated.

Opportunities

Opportunities are prospects for growth, greater profits and market share. Again, the evaluation is made in comparison with competitors. What capabilities differentiate your company from competitors? What opportunities would allow you to offer the same products or services, but at a higher quality or at a lower price? What customer needs are you still not meeting?

Technology is an external factor that always provides new opportunities and, as discussed below, creates new risks. What technological innovations could reduce the cost of goods or services, speed up production or distribution, or improve the customer experience?

Remember that opportunities always involve action. If you don't act, your competitors will.

Risks

Finally, determine in what aspects of the activity you are at risk. Are competitors developing similar products? Are they poaching your best employees? Such actions threaten your business.

Harvard Business Reviews defines Risks as "Possible events over which you have no control, and if they occur, you must have a mitigation plan."

Are you familiar with the latest legislative changes? Has a new law come out recently that increases your costs? What about taxes? All of these may be considered Risks.

Finally, technological innovations that provide new opportunities may create additional risks.

For example, you may be sued for insurance liabilities or demanded that the company be banned by law.

4. Actions based on the results of the SWOT analysis

The choice of an action plan based on the results of the analysis is a complex process that must take into account the specifics of the company. However, there are general notions about which approach to take. There he is:

• Enjoy the Benefits
• Eliminate Flaws
• Identify Risks
• Invest in Opportunities

In addition, it must be remembered that the main purpose of the SWOT analysis is to assess the current state of affairs. As researchers from the University of Kansas write, it is necessary to look for new boundaries, not justifications. SWOT is often misused to justify existing practices. If you are doing an analysis to find areas for development, you need to clearly identify all the shortcomings.

5. Examples of SWOT analysis for companies from different industries

tech startup

• Leadership, Management, Company management

Have you ever wondered what a good military leader does before a fight? He studies the field of the upcoming battle, looking for all the winning hills and dangerous swampy places, assesses his own strength and the strength of the enemy. If he does not, he will doom his army to defeat.

The same principles work in business. Business is a never-ending series of small and large battles. If you do not assess the strengths and weaknesses of your enterprise before the battle, do not identify market opportunities and threats (the very uneven terrain that becomes of great importance in the heat of battle), your chances of success will decrease dramatically.

In order to get a clear assessment of the strength of your company and the situation in the market, there is a SWOT analysis.

SWOT-analysis is the definition of the strengths and weaknesses of your enterprise, as well as the opportunities and threats coming from its immediate environment (external environment).

• Strengths (S trengths) - the benefits of your organization;
• Weaknesses (W eaknesses) are the shortcomings of your organization;
• Opportunities (O pportunities) - environmental factors, the use of which will create advantages for your organization in the market;
• Threats (T hreats) are factors that can potentially worsen your organization's position in the market.

The use of SWOT analysis will allow you to systematize all available information and, seeing a clear picture of the "battlefield", make informed decisions regarding the development of your business.

SWOT analysis in the marketing plan of your company

SWOT analysis is an intermediate link between the formulation of the mission of your enterprise and the definition of its goals and objectives. Everything happens in the following sequence (see Figure 1):

1. You have determined the main direction for the development of your enterprise (its mission)
2. Then you weigh your strengths and evaluate the market situation in order to understand whether you can move in the indicated direction and how best to do it (SWOT analysis);
3. After that, you set goals for your enterprise, taking into account its real capabilities (determining the strategic goals of your enterprise, which will be devoted to one of the following articles).

So, after conducting a SWOT analysis, you will have a clearer idea of ​​the advantages and disadvantages of your enterprise, as well as the situation in the market. This will allow you to choose the best development path, avoid dangers and make the most of the resources at your disposal, while taking advantage of the opportunities provided by the market.

Even if you are sure that you are already well aware of everything, we still advise you to conduct a SWOT analysis, as in this case it will help to structure the available information about the enterprise and the market and take a fresh look at the current situation and opening prospects.

How to conduct a SWOT analysis

In general, conducting a SWOT analysis comes down to filling in the matrix shown in Figure 2, the so-called. SWOT Analysis Matrices. In the appropriate cells of the matrix, you need to enter the strengths and weaknesses of your company, as well as market opportunities and threats.

Strengths of your enterprise, something it excels at or some feature that gives you additional opportunities. Strength may lie in your experience, access to unique resources, advanced technology and modern equipment, highly qualified staff, high quality of your products, brand awareness, etc.

The weaknesses of your enterprise are the absence of something important for the functioning of the enterprise, or something that you have not yet succeeded in comparison with other companies and puts you in a disadvantageous position. As an example of weaknesses, one can cite a too narrow range of manufactured goods, a bad reputation of the company in the market, lack of funding, low level of service, etc.

Market opportunities are favorable circumstances that your business can take advantage of. As an example of market opportunities, we can cite the deterioration of the position of your competitors, a sharp increase in demand, the emergence of new technologies for the production of your products, an increase in the level of income of the population, etc. It should be noted that the opportunities in terms of SWOT analysis are not all the opportunities that exist in the market, but only those that your company can use.

Market Threats are events that could adversely affect your business. Examples of market threats: new competitors entering the market, tax increases, changing consumer tastes, declining birth rates, etc.

Note: the same factor for different enterprises can be both a threat and an opportunity. For example, for a store that sells expensive products, the growth of household income may be an opportunity, as it will lead to an increase in the number of customers. At the same time, for a discount store, the same factor can become a threat, as its customers with rising salaries can move to competitors offering a higher level of service.

So, we have determined what should be the result of the SWOT analysis. Now let's talk about how to come to this result.

From words to deeds

Step 1. Determining the strengths and weaknesses of your enterprise

The first step in a SWOT analysis is to assess your own strengths. The first stage will allow you to determine what are the strengths and weaknesses of your enterprise.

In order to determine the strengths and weaknesses of your enterprise, you need to:

1. Make a list of parameters by which you will evaluate your company;
2. For each parameter, determine what is the strength of your enterprise and what is weak;
3. From the entire list, select the most important strengths and weaknesses of your enterprise and enter them into the SWOT analysis matrix (Figure 2).

Let's illustrate this technique with an example.

So, you have already done a significant part of the work on the SWOT analysis of your enterprise. Let's move on to the second step - identifying opportunities and threats.

Step 2. Identify market opportunities and threats

The second step of the SWOT analysis is a kind of "reconnaissance" - market assessment. This stage will allow you to assess the situation outside your enterprise and understand what opportunities you have, as well as what threats you should be aware of (and, accordingly, prepare for them in advance).

The methodology for identifying market opportunities and threats is almost identical to the methodology for determining the strengths and weaknesses of your enterprise:

Let's move on to an example.

As a basis for assessing market opportunities and threats, you can take the following list of parameters:

1. Demand factors (here it is advisable to take into account the market capacity, the rate of its growth or contraction, the structure of demand for the products of your enterprise, etc.)
2. Competition factors (you should take into account the number of your main competitors, the presence of substitute products on the market, the height of entry and exit barriers to the market, the distribution of market shares among the main market participants, etc.)
3. Sales factors (it is necessary to pay attention to the number of intermediaries, the availability of distribution networks, the conditions for the supply of materials and components, etc.)
4. Economic factors (taking into account the exchange rate of the ruble (dollar, euro), inflation rate, changes in the level of income of the population, tax policy of the state, etc.)
5. Political and legal factors (the level of political stability in the country, the level of legal literacy of the population, the level of law-abidingness, the level of corruption in power, etc.) are assessed.
6. Scientific and technical factors (usually taken into account is the level of development of science, the degree of introduction of innovations (new goods, technologies) into industrial production, the level of state support for the development of science, etc.)
7. Socio-demographic factors (you should take into account the size and age and sex structure of the population of the region in which your enterprise operates, the birth and death rates, the level of employment, etc.)
8. Socio-cultural factors (traditions and the system of values ​​of society, the existing culture of consumption of goods and services, existing stereotypes of people's behavior, etc. are usually taken into account)
9. Natural and environmental factors (taking into account the climatic zone in which your company operates, the state of the environment, public attitudes towards environmental protection, etc.)
10. And finally international factors(among them, the level of stability in the world, the presence of local conflicts, etc. are taken into account)

Then, as in the first case, you fill in the table (Table 2): in the first column you write down the assessment parameter, and in the second and third - the existing opportunities and threats associated with this parameter. The examples in the table will help you understand how to list the opportunities and threats in your business.

Table 2. Identifying Market Opportunities and Threats

Evaluation parameters	Opportunities	Threats
1. Competition	Barriers to entry to the market have increased: from this year it is necessary to obtain a license to engage in this type of activity	A major foreign competitor is expected to enter the market this year
2. Sales	A new retail chain has appeared on the market, which is currently choosing suppliers	Starting this year, our largest wholesale buyer selects suppliers based on the results of a tender
3. etc.

After filling in Table 2, as in the first case, you need to select the most important ones from the entire list of opportunities and threats. To do this, you need to evaluate each opportunity (or threat) in two dimensions by asking yourself two questions: “How likely is it that this will happen?” and “How will this affect my business?”. Select those events that are highly likely to happen and have a significant impact on your business. Enter these 5-10 opportunities and approximately the same number of threats into the appropriate cells of the SWOT analysis matrix (Figure 2).

So, the SWOT analysis matrix is ​​completed, and you see before you a complete list of the main strengths and weaknesses of your enterprise, as well as the opportunities and dangers that open up for your business. However, that's not all. Now you need to take the final step and match your company's strengths and weaknesses with market opportunities and threats.

Step 3: Matching the Strengths and Weaknesses of Your Enterprise with Market Opportunities and Threats

Matching strengths and weaknesses with market opportunities and threats will allow you to answer the following questions regarding the further development of your business:

1. How can I take advantage of the opportunities that are opening up, using the strengths of the enterprise?
2. What weaknesses of the enterprise can prevent me from doing this?
3. What strengths can be used to neutralize existing threats?
4. What threats, exacerbated by weaknesses in the enterprise, should I be most wary of?

To compare the capabilities of your enterprise to market conditions, a slightly modified SWOT analysis matrix is ​​used (table 3).

Table 3. SWOT Analysis Matrix

	OPPORTUNITIES 1. Emergence of a new retail network 2. etc.	THREATS 1. Emergence of a major competitor 2. etc.
STRENGTHS 1. High quality products 2. 3. etc.	1. How to seize opportunities Try to become one of the suppliers of the new network, focusing on the quality of our products	2. How you can reduce threats Keep our customers from switching to a competitor by informing them about the high quality of our products
WEAK SIDES 1.High production cost 2. 3. etc.	3. What can prevent you from taking advantage of opportunities The new chain may refuse to purchase our products, as our wholesale prices are higher than those of competitors	4. The biggest dangers for the firm An emerging competitor can offer the market products similar to ours at lower prices.

Once you complete this matrix (which we hope our examples will help you with), you will find that:

1. identified the main directions of development of your enterprise(Cell 1 showing how you can take advantage of the opportunity);
2. formulated the main problems of your enterprise, to be resolved as soon as possible for the successful development of your business (the remaining cells of table 3).

Now you are ready to set goals and objectives for your enterprise. However, we will talk about this in one of the following articles, and now we will dwell on the question that is probably of interest to you:

Where can I get information for conducting a SWOT analysis?

In fact, most of the information needed to conduct a SWOT analysis is already at your disposal. Basically, this is, of course, data on the strengths and weaknesses of your enterprise. All you have to do is collect all these disparate facts (taking reports from accounting, production and sales departments, talking with your employees who have the necessary information) and organize them. It will be better if you can involve several key employees of your enterprise in the collection and analysis of this information, since it is easy to miss any important detail alone.

Of course, information about the market (opportunities and threats) is somewhat more difficult to obtain. But even here the situation is not hopeless. Here are a few sources you can get useful information from:

1. results of marketing research, reviews of your market, which are sometimes published in some newspapers (for example, Delovoy Peterburg, Vedomosti, etc.) and magazines (for example, Practical Marketing, Exclusive Marketing, etc.);
2. reports and collections of Goskomstat and Petersburgkomstat (information on population, mortality and birth rates, age and sex structure of the population and other useful data);
3. finally, you can get all the necessary information by ordering a marketing research from a specialized company.

We will tell you more about the sources and methods of collecting information that you may need to conduct a SWOT analysis in the following articles. Now let's sum up all of the above.

Summary

SWOT analysis- this is a definition of the strengths and weaknesses of your enterprise, as well as the opportunities and threats emanating from its immediate environment (external environment).

SWOT analysis will allow you to choose the best way to develop your business, avoid dangers and make the most of the resources at your disposal.

The procedure for conducting a SWOT analysis in general comes down to filling out a matrix that reflects and then compares the strengths and weaknesses of your enterprise and the opportunities and threats of the market. This comparison allows you to determine what steps can be taken to grow your business and what problems you urgently need to address.

The following materials were used in preparing the article:

Zavgorodnyaya A.V., Yampolskaya D.O. Marketing planning. - St. Petersburg: Peter. 2002. - 352p.

Kotler F. Marketing management. - St. Petersburg, Peter Kom, 1998. - 896s.

Solovieva DV Electronic course of lectures on modeling. 1999.