ACADEMIC CONSTRUCT:

GAP Analysis & SWOT Analysis

NUR AMALINA BINTI AMRAN FARADILLAH FAZLEEN BINTI ABD. RASHID

GAP ANALYSIS
Tool helps identify the gap between current situation and the future state to reach, along with the tasks that need to complete to close this gap. The importance to attach a gap in the dependent is on the perception of the person evaluating the gap and the attributions made concerning why the gap exists.

Using Gap Analysis

To conduct a Gap Analysis for project, follow these three steps :

Note : Gap Analysis is applying at the beginning of a project when developing a business model, and it's essential when identifying the tasks that need to complete to deliver project.

1. Identify Future State

First, identify the objectives that need to achieve. This shows future state - the "place" where want to be once have completed the project. Simple example :
Future State

Current Situation
Service is bad, pizza is hard, staff is not friendly Slow service

Next Actions / Proposals

Promoting awareness among employee customer always right

Deliver customer satisfaction through Quick Restaurant

2. Analyze Current Situation

For each of objectives, analyze current situation. To do this, consider the following questions: Who has the knowledge that you need? Who will you need to speak with to get a good picture of your current situation? Is the information in people's heads, or is it documented somewhere? What's the best way to get this information? By using brainstorming workshops? Through one-to-one interviews? By reviewing documents? By observing project activities such as design workshops? Or in some other way?

2. Analyze Current Situation

Future State Deliver customer satisfaction through Quick Restaurant Current Situation Service is bad, pizza is hard, staff is not friendly Slow service Next Actions / Proposals Promoting awareness among employee customer always right

3. Identify How Will Bridge the Gap

Once have decided future state and current situation, we can think about what need to do to bridge the gap and reach our project's objectives. Current Situation Service is bad, pizza is hard, staff is not friendly Slow service Next Actions / Proposals Promoting awareness among employee customer always right

Future State Deliver customer satisfaction through Quick Restaurant

Tips
Pitch the Gap Analysis with provide an appropriate amount of detail. When analyze our future situation and current state, use metrics where information can be quantified (such as "costs of the product."), and general statements when metrics aren't available (such as "creativity is valued within the organization.")

An assessment of the current situation and the desired future state can be both quantitative and qualitative. Example :

Current Situation

Future State

Quantitative Qualitative

Total costs are RM100 Team members work in isolation.

Total costs will be RM80 Team members will work collaboratively

Key Point
By conducting a Gap Analysis, it can be identify what need to do to "bridge the gap" and make project success. Can be use Gap Analysis at any stage of a project to analyze progress, but it's most useful at the beginning. To carry out a Gap Analysis, first identify project's objectives - this is the "future state." Then analyze current situation, making sure that gather information from the right sources.

Finally, identify how will bridge the gap between current situation and the desired future state.

SWOT ANALYSIS
What is A SWOT Analysis ? Most useful and essential tools for any business, no matter what size. It is one of the most commonly used business analysis and decision-making tools. Method or model to analyze competitive position of company. A systematic and detailed examination of all internal and external factors that may affect a business, at any specific point in time. Often part of strategic planning & brainstorming. It can help you better understand your business and work out what areas need improving.

Uses of SWOT Analysis ?

For example, can use a SWOT analysis to decide if and how should do: take advantage of a new business opportunity respond to new trends implement new technology deal with changes to your competitors' operations.

What Does A SWOT Evaluate ?

SWOT : Strengths Weaknesses Opportunities Threats

What is Strength ?
Identify areas of business that are performing well. These areas are critical success factors and they give business their competitive advantage. Like internal value factors.

Question to be asked?

SOURCES 1

SOURCES 2

SOURCES 3

- What are your advantages? - What do you do well? - What relevant resources do you have access to? - What do other people see as your strengths?

- Current profit ratio increased - Employee morale high - Market share has increased

- Patents - Strong brand names - Good reputation among customers cost advantages from proprietary know-how - Exclusive access to high grade natural resources -Favorable access to distribution networks

- Unique product - Location of business - Patents, knowhow, trade secret - Worker unique skill set - Corporate culture, company image - Quality of product - Operational efficiency

What is Weakness ?
Identify these characteristics and minimise or improve them before they become a problem. Important to be realistic about the weaknesses in business so that can deal with them adequately.

Question to be asked? - What could you improve? - What do you do badly? - What should you avoid?

SOURCES 1 - Legal suits not resolved - Plant capacity has fallen - Lack of strategic management system

SOURCES 2 - Lack of patent protection - A weak brand name - Poor reputation among customers - High cost structure - Lack of access to the best natural resources - Lack of access to key distribution channels

SOURCES 3 - Lack of quality and customer service - Poor marketing and sales - Location of the business - Access to resources - Undifferentiated products and services

What is Opportunities ?
Identify opportunities that business could take advantage of to make greater profits. Conducting a SWOT analysis will help to understand the internal factors (business's strengths and weaknesses) that will influence ability to take advantage of a new opportunity.

Question to be asked? - Where are the good opportunities in front of you? - What are the interesting trends you are aware of?

SOURCES 1 - Western European unification - Rising health consciousness in selecting foods - Demand for soups increasing annually

SOURCES 2 - An unfulfilled customer need - Arrival of new technologies - Loosening of regulations - Removal of international trade barriers

SOURCES 3 - A new emerging or developing market (niche product, place new country, less competition) - Merger, joint venture, or strategic alliance - Market trends - New technologies - Social changes (for example demographics)

What is Threat ?
Threats are external factors that could cause problems for business, such as changes to the market, a competitor's new advertising campaign, or new government policy. A SWOT analysis can help to identify threats and ways to counteract them, depending on strengths and weaknesses.

Question to be asked? - What obstacles do you face? - What is your competition doing? - Are the required specifications for your job, products or services changing? - Is changing technology threatening your position? - Do you have bad debt or cash-flow problems? - Could any of your weaknesses seriously threaten your business?

SOURCES 1 - Low value of dollar - Tin cans are not biodegradable

SOURCES 2 - Shifts in consumer tastes away from the firm's products - Emergence of substitute products - New regulations - Increased trade barriers

SOURCES 3 - New competition in the market, possibly with new product and services - Price wars - Economic conditions - Political changes - Competitor oligopoly or monopoly - Taxation - Availability resources

Benefit of SWOT Analysis

Has little or no cost anyone who understands the business can perform a SWOT analysis. Can be use when don't have much time to address a complex situation Understand business better

Address Weaknesses

Deter Threat

Take advantage the strength

Develop business goals and strategies to achieving it.

Limitations of SWOT Analysis

When conducting SWOT, keep in mind that it is only one stage of the business planning process. For complex issues, it usually need to conduct more in-depth research and analysis to make decisions. Only covers issues that can definitely be considered a strength, weakness, opportunity or threat.

Doesn't provide solutions or offer alternative decisions

Can generate too many ideas but not help to choosing which one is the best

Can produce a lot of information, but not all of it is useful

SWOT Analysis of Pizza Hut

Part of largest restaurants chain in the world. Over 20,000 franchises around the world. Specialized in Pizza & have full service restaurant as well as delivery services. - Have many different segments that offer to others. Various range from young to old.
Loyal customers are feeling

that the satisfaction of the pizza is declining. Lead to lower customer satisfaction and a reduction customers and credibility in the market. They are providing less range of products comparatively with high prices. They are more focused on Western taste instead of Eastern.

Strength

Weaknesses

Opportunities
Pizza Hut can introduce new Pizza with different crust sizes and flavours. To attract new customers with new taste and this may release sales. Diversification of new products can increase their market share.

Threat
Rising competition undermines Pizza Hut as consumers go for greater convenience, this will lower the amount of sales consumed by Pizza Hut as these sales are going to smaller who are charging less. Threat from Dominos pizza,who have tried to introduce a new meal.

1.0 STRENGHTS
Part of largest restaurants chain in the world. 1.2 Over 20,000 franchises around the world. 1.3 Specialized in Pizza & have full service restaurant as well as delivery services. 1.4 Have many different segments that offer to others. Various range from young to old.

2.0 WEAKNESSES
2.1 Loyal customers are feeling that the satisfaction of the pizza is declining. Lead to lower customer satisfaction and a reduction customers and credibility in the market. 2.2 They are providing less range of products comparatively with high prices. They are more focused on Western taste instead of Eastern.

3.0 OPPORTUNITIES
3.1 Pizza Hut can introduce new Pizza with different crust sizes and flavours. To attract new customers with new taste and this may release sales. 3.2 Diversification of new products can increase their market share.

4.0 THREAT
4.1 Rising competition undermines Pizza Hut as consumers go for greater convenience, this will lower the amount of sales consumed by Pizza Hut as these sales are going to smaller who are charging less. 4.2 Threat from Dominos pizza,who have tried to introduce a new meal.

REFERENCES
Entering the 21st century Global Society, Thomas L. Wheelen & J. David Hunger, Addison Wesley, 1998. Bradford, Robert W., Duncan, Peter J., Tarcy, Brian, Simplified Strategic Planning: A No-Nonsense Guide for Busy People Who Want Results Fast! David, Fred R. (1993). Strategic Management, 4th Ed. New York: Macmillan Publishing Company. SWOT Analysis: A Management Tool for Initiating New Programs in Vocational Schools by Radha Balamuralikrishna and John C. Dugger describes the use of a SWOT analysis to initiate new programs in vocational schools.