ANALYSIS Carlos Maglutac Look at current conditions and changes you can expect
STEP 1 - UNDERSTAND STEP FACTORS
Understand each factor and its scope: SOCIAL TECHONOLOGICAL ECONOMIC POLITICAL
STEP 1 - UNDERSTAND STEP FACTORS
SOCIAL cultural and demographic aspects to determine whether the business can compete in the market. assess consumer needs which compel them to make a purchase. Age distribution, lifestyle changes, population growth, demographics, environmental, health and educational consciousness
STEP 1 - UNDERSTAND STEP FACTORS
TECHNOLOGICAL factors which affect the means it can bring its product or service to the market. technology available that make it easy or tough to improve the production level or enter the industry. government expenditure on technology, technological advancements, lifecycle of technology available, role of internet and the changes to it (if any)
STEP 1 - UNDERSTAND STEP FACTORS
ECONOMIC economic aspects to determine whether or not they can play a role in the success of a business. economic growth, unemployment policies, and business cycle of the country, as well as economic, interest and inflation rates
STEP 1 - UNDERSTAND STEP FACTORS
POLITICAL how legal issues and government regulations affect the probability of a business being successful and profitable. political stability, employment laws, safety regulations and trade regulations.
STEP 1 - UNDERSTAND STEP FACTORS
gather as much as relevant data you can about the external environment of the business. You can find most of the information on the internet.
STEP 2: GATHER RELEVANT DATA
evaluate and identify any opportunities these changes can bring to you. For example, could it open up new markets? help you develop new products? or make processes more efficient?
STEP 3: IDENTIFY OPPORTUNITIES
Elements that are undermining your business. This would allow you to prevent problems, or at least reduce their intensity. Current and Potential alternatives Price sensitivity
STEP 4: IDENTIFY THREATS
Evaluate your organizations Strengths Relevant to Opportunities and Threats Use to take advantage of these Opportunities Use to counteract Threats
Evaluate your organizations Weaknesses
Relevant to Opportunities and Threats Invest in Combatting Threats Invest in developing capabilities and strengths
STEP 5: IDENTIFY YOUR STRENGTHS
AND WEAKNESSES take advantage of opportunities by including them in your business plan. take appropriate steps and measures to eliminate or manage threats.
STEP 6: TAKE ACTION
TOWS Strategic Alternatives Matrix External Opportunities External Threats O1 T1 O2 T2 Internal Strengths SO ST "Maxi-Maxi" Strategy "Maxi-Mini" Strategy S1 Strategies that use Strategies that use S2 strengths to maximize opportunities. strengths to minimize threats.
Internal Weaknesses (W) WO WT
W1 "Mini-Maxi" Strategy "Mini-Mini" Strategy Strategies that minimize Strategies that minimize W2 weaknesses by taking advantage of weaknesses and avoid threats. opportunities.
BUILD YOUR SWOT MATRIX
Market Segmentation Product Differentiation and Positioning