Q1. Define SWOT analysis with appropriate examples using external resources (200 words) SWOT Analysis, technique credited to Albert Humphrey, is strategic planning method used to evaluate Strengths, Weaknesses, Opportunities and Threats involved in business ventures. 1 It involves 1) Specifying objective 2) Identifying internal and external factors favorable and unfavorable to achieve objective 1 Example – Healthcare Software Company selling high value products 2
Strengths : Internal Characterisitcs of Business that give it an advantage 1 • Highly experienced team, well established, reputable company • High Percentage of Sales from Exports • Knowledge of Advanced technology • Very efficient Processes • Top class service Weaknesses : Internal Characteristics that place it at disadvantage 1 • Customers slow to Upgrade • Complicated Products – need lots of Customisation • Products innovative and market needs to be educated • Technology emphasis within company rather than Marketing emphasis Opporutnities : External chances to impove performance 1 New competitors entering markets • Government spending cut backs • Technology changing fast Theats : External elements that could cause trouble 1 • Population ageing • Environmental issues increasing profile • Healthcare costs rises rapidly • Increased Safety and Risk awareness in healthcare Possible Strategy 2 Invest in marketing skills and knowledge to find new markets for specialist technical knowledge Increase export market to give buffer to Local Government initiatives in healthcare Add more value to customers outbidding new competitors.
Emphasis in sales materials to offset new competitors entering market. http://en. wikipedia. org/wiki/SWOT_analysis & http://www. managementstudyguide. com/swot-analysis. htm Copyright © 2008 – 2012 managementstudyguide. com. All rights reserved. (1) |http://www. rapid-business-intelligence-success. com/sample-swot- analysis. html © Copyright Syd Stewart 2008 (2)| | |