Friday, September 9, 2016

SWOT (Strengths, Weaknesses, Opportunities and Threats)

MATRIX OF THREATS, OPPORTUNITIES, AND FORCES WEAKNESSES (SWOT )
  • INTRODUCTION
  • Among the tools we possess in decision-making, SWOT technique certainly constitutes a system that provides adequate execute the decisions taken by the manager or chief administrative strategies.
    What is a SWOT Analysis
    Recommend article: SWOT Analysis Templates
    SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities and Threats . It is the analysis of controllable variables (weaknesses and strengths that are internal to the organization and therefore can act on them more easily), and variables can not be controlled (opportunities and threats presents the context and we can take further action regarding them is coming and to act at our convenience).
    In this regard, the SWOT can be defined as a tool of strategic analysis, to analyze internal elements to the company and therefore controllable, such as strength and weaknesses, as well as external to the same factors and therefore can not be controlled, such as opportunities and threats.
    For a better understanding of this strategic tool, we define acronyms as follows:
  • Fortaleza.- All those positive elements that differentiate me from the competition
  • Debilidades.- are the current problems that once identified and develop an appropriate strategy can and should be eliminated.
  • Opportunities .- positive situations are generated in the environment and are available for all companies, which will become market opportunities for the company when it identifies them and take depending on their strengths.
  • Threats .- are situations or external to the company or institution that facts and may become negative for it.
  • The analysis of this tool is to assess the strengths and weaknesses that are related to the internal environment (technological technical human resources, financial, etc.) and opportunities and threats that relate to the external environment (microenvironment: suppliers, competitors, distribution channels, consumers) (macro environment: economy, ecology, demography, etc.) of the company.
    The importance in conducting this analysis is to determine objectively that respects the company or institution has advantages over its competition and which aspects need improvement to be competitive
    The functional areas of all organizations have strengths and weaknesses. No company or institution has the same strengths or weaknesses in all areas. The strengths and internal weaknesses, combined with external opportunities and threats, as well as a clear statement of the mission, are the basis for setting objectives and strategies.

    The goals and strategies are established with the intention to capitalize on internal strengths and overcome weaknesses
    In this regard, the SWOT analysis is a tool used to understand the current situation of a company or organization. The aim of this tool is to help you diagnose, accordingly, to forecast and decide.
    The Interactive SWOT is a useful tool to enhance the strengths of a particular business and neutralize the weak, and to make effective use of the opportunities the environment offers and skillfully dodge threats that arise. It is important to learn to look, and this is the great help that provides Interactive SWOT
    With the SWOT it can detect: · the strengths of your company resources and skills acquired business;what they have a more consistent competition position. · Opportunities in the environment: . variables that are plain sight but if they are not recognized in time, mean the loss of a competitive advantage · The Weaknesses your company . those factors that are in an unfavorable position compared to its competitors· Threats to the environment: variables that test the survival of their company, and recognized in time, can be dodged or be converted into opportunities
  • The objective of SWOT Interactive is to help diagnose, accordingly, to forecast and decide on different issues that will serve as a tool to perceive what current environmental conditions are a threat to your company and what an opportunity. In addition, internally, you can determine the strengths and weaknesses of your company over its competitors.
  • TECHNICAL SWOT
  • The SWOT technique is mainly oriented analysis and problem solving and is carried out to identify and analyze the strengths and weaknesses of the organization and Opportunities (exploited and unexploited) and Threats revealed by information obtained from the external environment.

    1. Components of a SWOT analysis

    positives
    negatives
    internal
    Strengths
    weaknesses
    external
    opportunities
    threats

    The strengths and weaknesses relate to the organization and its products, whereas Opportunities and Threats are external factors over which the organization has no control. Therefore, SWOT Institutional conditions must be analyzed in the following order: 1) Fortresses; 2) Opportunities; 3) Threats; and 4) Weaknesses. By detecting threats weaknesses, the organization will have to pay attention to the first and develop appropriate strategies to counter them, and thus be diminishing the impact of the weaknesses first.To be aware of the threats, the organization will take advantage of a more comprehensive manner both its strengths and its opportunities.
    The Strengths and Weaknesses include among others, the strengths and weaknesses of the organization and its products, since they will determine how successful we launching our plan. Some of the opportunities and threats will be developed based on the strengths and weaknesses of the organization and its products, but most will derive the market environment and competition both present and future.
    SWOT as technical planning, will allow for valuable information from people involved with the administration of the business and its know - how can provide invaluable ideas for organizational future. It should be noted that intuition and creativity of those involved is an essential part of the analysis process.
    The technique requires an analysis of the different elements that are part of the inner workings of the organization and that may have implications for their development, such as the types of products or services offered by the organization, determining what has comparative advantage relative other suppliers, either due to developed techniques, quality, coverage, costs, recognition by customers, etc .; managerial capacity in relation to the role of management and leadership; as well as the strengths and weaknesses of the organization in the administrative areas. Items can be increased according to the perceptions that have the organizational environment by those who made the diagnosis.
    SWOT analysis, uses the main points of the study of the context and identifies those that offer opportunities and pose threats or obstacles that for operation. For example, if the population is not satisfied, this represents an opportunity by not fully exploited the potential of current products and markets. If context analysis identifies a new product as necessary, this would be another opportunity. However, if the product has reached its maturity, this means a threat to survival that must be considered during the planning process.
    It should also be noted that the assessed factors represent the same element of the technique to all organizations because what could be a strength for one, could be weak for another of them, for example, a small company probably allow you to have a focus flexible customers (strength), but probably will not have the advantages of a dominant organization on the economies of scale of a large company that performs the manufacturing and purchasing (weakness). An opportunity is something that can be exploited to our benefit and that may well be one of the weaknesses of the competitor. It could also well be an opportunity, an expanding market or the opening of a new market; Also threats are external to the organization and can be real or possible at some point in the future, that is, for example, the potential market entry of new competitors.
    2. methodological Ppropuesta for the development of the SWOT technique
    In this section we describe a proposed methodology for carrying out the SWOT of the organization, which includes the following steps: 1) Integration team, 2) Design of a working agenda, 3) Working Session (rain ideas), 4) Selection and problem analysis 5) Sorting problems, 6) evaluation of the problems, 7) weighted selection problems, 8) comparative analysis of SWOT, 9) strategic alternatives, 10) Definition of business, 11) Plan of operation, and 12) ongoing assessment; same as presented graphically in Figure 2.
    Figure 2. Process Steps SWOT Analysis

    1 Integrating the team . The most successful planners actively integrate a team of key members in the planning process. Disagreements on the definition of the objectives and how to achieve them resolved within the planning process, which is expected somehow that internal conflicts do not constitute an obstacle to implementation. Thus, plans are carried out in a more feasible and realistic way, as team members will be focused and more committed to the stage of the planning process that defines how the objectives.
    The administrator or boss needs then design the flattening process so that staff involved different levels:
  • It is desirable that the size of the group that plans and makes decisions is small enough to allow productive in each of the meetings scheduled for the planning process discussions; suggested that integrates of 5 to 8 members.
  • The composition of the planning group must be representative of all key groups, departments or functions and activities that make up the organization.
  • It is desirable that staff at all levels have an effective communication channel, so that the planning group know their views and they in turn informed, regularly, on the issues being addressed by planners.
  • With regard to the problems inherent time administrators engaged in strategic planning, it is suggested, if possible:
    · Organize meetings with the technical team in a place other than their own work center during the days when planning functions are performed.
    · Prepare an agenda for the planning process several months in advance, ensuring that all key personnel have reserved the time required in their work plans to gather any information necessary before planning meetings are conducted, and so have the time required to implement the necessary changes.
    2. DESIGN WORK AGENDA . Most plans set specific targets or measurable performance goals for an organization or project also defining the person or persons responsible (s) for each activity. This clarity of purpose and division of work, allows the administrator to identify and coordinate the team members responsible for the implementation of activities and achievement of objectives. The definition of the dates for the team meeting and will carry out its work by consensus, requiring clear for these meetings agendas and predetermined targets. In addition to the above, a division of roles and responsibilities, so that participants have time to organize and prepare for the work assigned to them is necessary.
    Regardless of the time that an organization requires to carry out the planning, it is important to develop a program that includes all the steps in the process and specify who participates in each, the time required and dates. This allows the entire team:
    · Know what is expected of him;
    · Prepare their contributions in time;
    · Be available for meetings;
    · You are familiar with all steps of the process.
    3. WORK SESSION (BRAINSTORM) . Usually mechanics working in the SWOT analysis is addressed through the technique of "brainstorming" the views of each of the members of the planning team. For this practice is efficient, the team can make a written analysis of the context establishing its position in advance of the meeting. It is useful to publicize the results of the SWOT analysis to key administrators of the organization (eg, department heads, managers, regional managers, general manager, etc.), for their opinion and approval.
    No program is perfect, but through planning you can get better results. When significant changes occur in the context in which organizations operate, they may require radically different or different strategies. The changes needed to respond to new expectations and needs undoubtedly are motivators; however, they can be a source of conflict if some managers and their teams act on the defensive for the fact that he spent years and energy in the design and maintenance of existing programs. The planner can anticipate these circumstances and contain its negative effects to a minimum, if:
    · Create a positive atmosphere for the planning process and puts the interests of the organization to personal interests.
    · It is particularly careful to point out the successes of programs before discussing the areas that need improvement. Also, you have to avoid widespread negative statements about the performance of programs.
    · Presents a positive attitude towards failures or errors as part of a learning process: "We learned this lesson from this experience, what strategy would be better?"
    A proposal for practicing the technique of "brainstorming" can be for example: receive all proposals and opinions to provide members of the group on the strengths, weaknesses, opportunities and threats of the organization removing comments and discussions personal , listing them and numbering them in a visible group members (board or flip chart) so that later they can be valued place.
    4. SELECTION AND ANALYSIS OF PROBLEMS . In most organizations, staff have interests and different views depending on their position within the organization, their training and their personal beliefs. Most of the key issues related to problem analysis generate conflicts, so they must be handled in a way that allows the consensus of all parties in the final decision. The moderator of the meeting can handle these conflicts with profit if:
    · Achieves be seen in neutral and independent manner (this person may be external to the organization).
    · Poses clear to all participants that disagreements can be an essential and productive part of the planning process, as they ensure that the issues in question are considered and addressed from all possible points of view. The person leading the group (the leader of the meeting) should specify that disagreements are positive while not degenerate into personal attacks.
    · Procedures in meetings for participants to listen to each other and to give due consideration and attention to the ideas of others. It is important to be completely honest when the strengths and weaknesses of the organization of which we are a part are consigned.
    In order to facilitate analysis of strengths and weaknesses, opportunities and threats issued by the group members may be included on the same page. This can be done in different ways. You can put the four headings at the top of the page and prepare four vertical lists. It is possible to obtain a better effect by dividing the page into four rectangles and place on top strengths and weaknesses and the opportunities and threats down.
    If through the "brainstorming" have generated a number of problems, the difficulty you may face the moderator at a working meeting will be how to select the most significant, so our proposal is that ask each member of the group to select the 10 options considered most representative of all the listed (unsorted).Points or marks every time the problem is selected and choose the 10 options with most points or marks are assigned. To illustrate suppose we have consigned the following views on the weaknesses of the organization of the six members of a planning team, which have been listed by the moderator and selected by each of the members of the group by marking them with a cross.

    PROPOSAL OF WEAKNESS
    TEAM MEMBER No.
    TOTAL
    1
    2
    3
    4
    5
    6
    1. Lack of quality controls
    X


    X
    X
    X
    4
    2. Lack of definition of the functions of employees
    X
    X
    X


    x
    4
    3. Financial Unit bank loans

    X
    X
    x
    X

    4
    4. cumbersome administrative process is not computerized
    X
    X
    X
    X
    X
    X
    6
    5. Lack of planning work
    X
    X
    X
    X
    X
    X
    6
    6. Lack of managerial leadership
    X
    X
    X
    X
    X

    5
    7. Lack of integration of people with plans and programs
    X

    X
    X

    X
    4
    8. Lack of employee engagement


    X
    X
    X

    3*
    9. Lack of monitoring of programs and projects

    X
    X
    X
    X
    X
    5
    10. Lack of support for research and development.
    X
    X



    X
    3*
    11. Lack of modernization of plant and equipment

    X

    X
    X
    X
    4
    12. Lack of definition of criteria for assessing organizational performance.
    X

    X


    X
    3*
    13. Lack of training and staff development
    X


    X
    x
    X
    4
    14. insufficient facilities for expansion
    X
    X
    X



    3*
    15. Lack turnover

    X


    X

    2*
    * Proposals postponed for further analysis.
    The absence of quality controls for example, has been chosen by the members 1, 4, 5 and 6, for a total of 4 brands. In the aforementioned case, for a deeper analysis team members, proposals No. 1 to 7, 9, 11 and 13 will be selected.
    5. MANAGEMENT PROBLEMS . Once the 10 proposals selected by each group member is asked to the 10 selected weaknesses are assigned an order number 10 calling the most important and 1 the least important. Leaving the system in our example as follows:
    PROPOSAL OF WEAKNESS
    TEAM MEMBER No.
    1
    2
    3
    4
    5
    6
    1. Lack of quality controls
    1
    2
    5
    2
    3
    1
    2. Lack of definition of the functions of employees
    4
    7
    6
    1
    4
    2
    3. Financial Unit bank loans
    5
    8
    7
    6
    5
    10
    4. cumbersome administrative process is not computerized
    9
    1
    8
    7
    9
    4
    5. Lack of planning work
    8
    10
    9
    9
    8
    5
    6. Lack of managerial leadership
    10
    9
    10
    10
    10
    3
    7. Lack of integration of people with plans and programs
    7
    6
    4
    3
    2
    8
    8. Lack of monitoring of programs and projects
    6
    5
    3
    5
    1
    9
    9. Lack of modernization of plant and equipment
    3
    4
    2
    4
    7
    7
    10. Lack of training and staff development
    2
    3
    1
    8
    6
    6

    6. ASSESSMENT OF PROBLEMS . Once sorted the proposals by the group, the moderator shall give the corresponding elements considering the values ​​assigned amount, being in the example as follows.

    PROPOSAL OF WEAKNESS
    TEAM MEMBER No.
    SUM
    1
    2
    3
    4
    5
    6
    1. Lack of quality controls
    1
    2
    5
    2
    3
    1
    14
    2. Lack of definition of the functions of employees
    4
    7
    6
    1
    4
    2
    24
    3. Financial Unit bank loans
    5
    8
    7
    6
    5
    10
    41
    4. cumbersome administrative process is not computerized
    9
    1
    8
    7
    9
    4
    38
    5. Lack of planning work
    8
    10
    9
    9
    8
    5
    49
    6. Lack of managerial leadership
    10
    9
    10
    10
    10
    3
    52
    7. Lack of integration of people with plans and programs
    7
    6
    4
    3
    2
    8
    30
    8. Lack of monitoring of programs and projects
    6
    5
    3
    5
    1
    9
    29
    9. Lack of modernization of plant and equipment
    3
    4
    2
    4
    7
    7
    27
    10. Lack of training and staff development
    2
    3
    1
    8
    6
    6
    26

    7. SELECTION PROBLEMS . At this stage the proposals evaluated by team members, will be ranked high to low depending on the value obtained in the sum to identify what were the most significant in accordance with the opinion of the team and determine the priority that should be served or resolved each of the problems identified.

    PROPOSAL OF WEAKNESS
    TEAM MEMBER No.
    SUM
    1
    2
    3
    4
    5
    6
    1. Lack of managerial leadership
    10
    9
    10
    10
    10
    3
    52
    2. Lack of planning work
    8
    10
    9
    9
    8
    5
    49
    3. Financial Unit bank loans
    5
    8
    7
    6
    5
    10
    41
    4. cumbersome administrative process is not computerized
    9
    1
    8
    7
    9
    4
    38
    5. Lack of integration of people with plans and programs
    7
    6
    4
    3
    2
    8
    30
    6. Lack of monitoring of programs and projects
    6
    5
    3
    5
    1
    9
    29
    7. Lack of modernization of plant and equipment
    3
    4
    2
    4
    7
    7
    27
    8. Lack of training and staff development
    2
    3
    1
    8
    6
    6
    26
    9. Lack of definition of the functions of employees
    4
    7
    6
    1
    4
    2
    24
    10. Absence of quality control
    1
    2
    5
    2
    3
    1
    14
    8. COMPARATIVE ANALYSIS SWOT . When you have carried out the order of priorities, now, one by one in the corresponding section, are studied and compared to determine the nature and the "how" will have to solve. Knowing what strengths, weaknesses, opportunities and threats selected by the group are, they must undergo analysis congruences between them to determine work programs and possible strategic alternatives for the organization. At this time, the group should be involved in the process and make it easier for them to determine alternatives for organizational development.
    9. strategic alternatives . When you have determined the whys and hows it comes to solving every problem; if there is a consensus on the decisions made ​​during the process and all agree that the package of strategic alternatives selected lead the institution towards achieving the objectives, exploiting the internal strengths, overcoming organizational weaknesses, exploiting opportunities and minimizing external threats, as well as contributing to the financial health of the organization being feasible in relation to the needs and financial capabilities of it, then, strategies, objectives, activities and financial plans (functional and operational) represent a clear for institutional development and the annual work plan or operating plan guide.
    10. DEFINITION OF BUSINESS . It is at this stage and with from analysis information variables SWOT technique, the proposed work plans and strategic alternatives, we can define the concept of business of the organization, determining vision, mission, philosophy, strategy and general objectives that include products, services, difference (s) competitive (s), competitors, customers (current, potential, etc), so let the forces and market trends that directly affect the organization as a whole, result analysis generic and specific problems identified in the SWOT.
    11. PLAN OF OPERATION . As a result, they have to make the necessary operational plans (short - term) of each of the areas or set them to achieve the desired future for the organization settings. The long - term plans cover fixed periods, generally three to five years, and are set in advance. In our view operational or operational plans differ from strategic plans in addition to the time horizon considered, mainly in the degree of specificity which must be reached in the first, ie operational plans are more specific and detailed as to what is to be achieved and what should be done to achieve the objectives.
    Operational plans are integrated, among others, the following: specific objectives, goals, activities undertaken, organizational structure, resources (technical, financial, material and human), time of application, the form of supervision and the evaluation of the results expected for each of them.
    Once you have made the necessary adjustments, the proposal is documented and turna those responsible for making final decisions, so that each knows its commitments and participation for implementation of the plan.
    12. PERMANENT EVALUATION . In addition to the problems and internal adjustments (the organization) that may arise in the development of the plan of operation of an organization, there are also unexpected factors such as political changes or inflation problems, which affect the results of a program. It is therefore advisable to evaluate the entire process of the annual operation of the organization and update its concept reconsidering strategies, objectives and financial plans.
    AUDITS?
  • THE NATURE OF ANALYSIS AND CHOICE OF STRATEGIES
  • View possibility of moving to introduction
    The analysis and choice of strategies involves largely, making subjective decisions based on objective information.
    Analysis and selection of strategies intended to determine alternative courses of action that will enable the institution to achieve to the best of its mission and objectives.
    Strategies, objectives and mission that the company, together with information from external and internal audits, provide the basis to generate and evaluate viable alternative strategies.
  • FIELDS OF APPLICATION
  • J. STRATEGIES TO DEVELOP THE SWOT
    The SWOT Matrix is ​​a system of evolution, is a major adjustment tool that helps managers develop four types of strategies:
    1. Strategy Strengths and Opportunities (FO)
  • Weaknesses and Opportunities Strategy (DO)
  • Strategy and Threats Forces (FA)
  • Strategies Weaknesses and Threats (DA)
  • The FO strategy used internal forces the company to take advantage of external opportunities. As a rule, organizations pursuing strategies of DO, FA or DA to be placed in a situation where they can implement strategies FO. When a company has significant weaknesses, fought to overcome it and turn them into force.When an organization faces significant threats, try to avoid to focus on opportunities.
    The strategies aim DO overcome internal weaknesses by taking advantage of external opportunities. At times there are external opportunities, but an institution has internal weaknesses that prevent them from exploiting these opportunities. For example there could be a high demand for electronic devices to control the amount and timing of injection of fuel in car engines (opportunity), but a manufacturer of auto parts may lack the technology required to produce Tarry devices (weakness ).
    DO A possible strategy would be to acquire such technology constituting a joint venture with a competent company in this field. Another strategy would be DO recruit and teach the required technical capabilities.
    FA strategy leverage forces enterprise
    here
    SWOT MATRIX
    FORTALEZA - F
    WEAKNESS IS - D
    OPRTUNIDADES - O
    STRATEGIES - FO
    STRATEGIES - DO
    CONCLUSIONS
    According to our concept, strategic planning is formalized process of long-term planning, which allows selection in accordance with the environment in which the organization operates, vision, mission, philosophy, goals, strategies and goals to guide the operational plans necessary to achieve the desired future. It is therefore an inclusive process of all functions and activities of an organization (of whatever nature) as it caters guides or essential, vital issues; allows strategize, strategic plans and tactical plans; It provides a framework for operational planning inherent in the different areas of an organization; indicates the scope or framework of long-term planning; orients the resources of the organization as a whole; be an activity carried out by the high level of authority of the organization.
    The strategic planning process feeds the information system established to provide the data and information necessary to make contextual decisions regarding a particular situation, defining the lines of action (strategies and tactics) required, and implying therefore the need analyze and evaluate data and information not only from the external socioeconomic environment but also the internal, to facilitate the possibility of making diagnoses and make forecasts for plans and programs, which finally allow the adoption of strategic decisions; in this paper we have tried to describe a methodology for using a technique called SWOT which facilitates the development of this process.
    The SWOT analysis technique allows problems specifying the strengths and weaknesses of an institution, related to opportunities and threats in the market. The strengths and weaknesses relate to the organization and its products, while opportunities and threats usually are considered as external factors over which the organization has no control. Then you can try to exploit the strengths, overcome weaknesses, exploit opportunities and defend against threats all important functions of the planning process and in which the technique can be used in the situational analysis within the process.
    Situational analysis and diagnosis made ​​with the SWOT technique allows to evaluate information related to the organization, performance, key competitors, products, geographies, market segments served, social, economic and legal situation, etc., and place ourselves in the most viable strategic alternative agreement with the evaluation of it as well as any restrictions in advance and advantages that may or may not be used by the organization. In the example used in this paper, you can be observed in the phase of selection of problems that the lack of effective leadership is affecting low performance not only planning the works but also of a financial nature which has led to the organization financially dependent on bank loans.
    The practice of this technique problem analysis (SWOT) not only allows us to do an exercise in efficiency as a means of achieving organizational objectives (effectiveness), but enables us to develop mental processes that allow management and transformation of information, through the exercise of analytical and creative thinking skills; as it not only seeks to understand through the construction and reconstruction of objects of knowledge, but an expert, critical and creative thinking is required, manifested through originality, as well as comparison, relationship, formulation, evaluation and proposition both options and alternative models as their own from a holistic perspective.
    Finally, through our proposed development model SWOT schematically in phases and simplified, we hope that the reader has been interested not only in the application of it but we have managed to note the importance of planning for the success of any organization.
    Article Source: TapeDaily