Reference no: EM131314809

Mktg305 Marketing Principles Group Project Assignment

How to SWOT

Identify the problems. Teaching cases are typified by the presentation of a problem, or sometimes multiple problems, for the reader to systematically solve through the case analysis process. After initially reading or skimming the case, you should read through the case again for the purpose of determining what problems the main character (principal) in the case is faced with solving.

Analyze the situation. After determining the problem faced in the case, you need to analyze the situation surrounding the focal organization in the case. At the core of this analysis is a SWOT analysis (SWOT is an acronym for strengths, weaknesses, opportunities, and threats). Within the organization, what strengths and weaknesses does the company have? Externally, or outside the organization, what opportunities may be available to the organization and what threats could it face? If you are unfamiliar with a SWOT analysis, you can find a wealth of resources on the topic through an Internet search or at a library. Also note that other types of situational analysis techniques may be available other than the SWOT analysis.

Generate potential solutions. The next step in the case analysis is the most creative element, in which you generate a list of potential solutions to the problems faced in the case. This is a brainstorming activity, although it is typical to narrow the list of potential solutions to the two to four most reasonable options for solving the problem.

Evaluate potential solutions. After developing, and potentially narrowing, a list of potential solutions, evaluate the advantages and disadvantages, or pros and cons, of each. With each solution, what are its positive and negative characteristics and potential consequences if implemented? Is the solution practical to implement? Effective managers are able to analyze the virtues of each potential solution in the future, as well as what pitfalls could occur.

Choose the optimal solution. The final step in the case analysis process is to choose the best solution. Based on the advantages and disadvantages of the potential solutions examined in the previous two steps of this process, which do you believe is the right choice for the case principal and organization to take? Most important, you need to be able to support and defend this choice. Be prepared to answer the question of why you believe it's the right choice and back up your choice with facts, data, or examples.
Potential Questions to Ask

A SWOT analysis will answer these questions:

• What are the internal strengths and weakness of your company?

• What are the external opportunities and threats in your industry and its environment?

• Can any weaknesses be converted to strengths? Any threats into opportunities?

• How can your company take advantage of strengths and opportunities?

• What strategic changes can your company implement as a result of the SWOT analysis?

How to Perform a SWOT Analysis (Tim Berry)

• Bullet points may be the best way to begin

• Capture the factors you believe are relevant in each of the four areas

• The primary purpose of the SWOT analysis is to identify and assign each significant factor, positive and negative, to one of the four categories, allowing you to take an objective look at the business

• The SWOT analysis will be a useful tool in developing and confirming your goals and your marketing strategy.

Strengths

Strengths describe the positive attributes, tangible and intangible, internal to the organization. They are within your control.

• What do you do well?

• What resources do you have?

• What advantages do you have over your competition?

Strengths capture the positive aspects internal to the business that add value or offer a competitive advantage.

Weaknesses

Weaknesses are factors that are within your control that detract from your ability to obtain or maintain a competitive edge. Which areas might be improved?

Weaknesses might include:

• lack of expertise

• limited resources

• lack of access to skills or technology

• inferior service offerings

• poor location of the business

These are factors that are under the control of the business, but for a variety of reasons, are in need of improvement to effectively accomplish marketing objectives. The more accurately you identify weaknesses, the more valuable the SWOT will be.

Opportunities

What opportunities exist in your market, or in the environment, from which you hope to benefit? These opportunities reflect the potential you can realize through implementing marketing strategies. Opportunities may be the result of:

• market growth

• lifestyle changes

• resolution of problems associated with current situations

• positive market perceptions about your business

• ability to offer greater value that will create a demand for your services

If relevant, place timeframes around the opportunities. Does it represent an ongoing opportunity, or is it a window of opportunity? How critical is the timing? If you have

identified "opportunities" that are internal to the organization and within the control of the business, you will want to classify them as strengths.

Threats

Threats include factors beyond your control that could place your marketing strategy, or the business itself, at risk. You have no control over them, but you may benefit by having contingency plans to address them if they should occur.

A threat is a challenge created by an unfavorable trend or development that may lead to deteriorating revenues or profits. Competition - existing or potential - is always a threat. Threats may include:

• competition

• intolerable price increases by suppliers

• governmental regulation

• economic downturns

• devastating media or press coverage

• a shift in consumer behavior that reduces your sales

• the introduction of a "leap-frog" technology that may make your products

• obsolete equipment or services

What situations might threaten your marketing efforts? Get your worst fears on the table. Part of this list may be speculative in nature, and still add value to your SWOT analysis. The better you are at identifying potential threats, the more likely you can position the company to proactively plan for and respond to them. You will be looking back at these threats when you consider contingency plans.

The implications

The internal strengths and weaknesses, compared to the external opportunities and threats, can offer additional insight into the condition and potential of the business. How can you use the strengths to better take advantage of the opportunities ahead and minimize the harm that threats may introduce if they become a reality?

How can weaknesses be minimized or eliminated? What Weaknesses and Threats can be detoured?