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Question
"Hello Sir ,

   please send me the answer of the following question.
MS-93


    Q.2 Using the SWOT framework conduct an opportunity analysis for the following.
     (a). a leather products outlet
     (b). a handicrafts outlet


  Regards,
   Richa Rathod"

Answer
2. Using the SWOT framework conduct an opportunity analysis for the following.

(a) a leather products outlet
(b) a handicrafts outlet

useful forBusiness Owner/Entrepreneur/Manager

Definition  of  SWOT
SWOT analysis is a general technique which can be applied across diverse functions and activities, but it is particularly appropriate to the early stages of planning for CORPORATE  STRATEGY . Performing SWOT analysis involves generating and recording the strengths, weaknesses, opportunities, and threats relating to a given task. It is customary for the analysis to take account of internal resources and capabilities (strengths and weaknesses) and factors external to the organisation (opportunities and threats).
THE  NECESSITY   FOR  SWOT
Strengths
Strengths usually describe things that the company excels at doing. All strengths listed should support a competitive advantage that the corporation has over its rivals. These can be tangible (fast delivery of products to customers) or intangible (excellent customer service promotes very high customer satisfaction). As these are internal attributes they should all be within the company’s control. Ask questions such as:

• What does the company do well?
• What resources (physical and personnel) does the company possess?
• What advantages does the company have over its rivals?

Do not forget to include key strengths that the people in the organization possess which includes things such as their experience, knowledge, educational background, business connections, and job skills. Tangible assets such as plant capacity, state of the art equipment and facilities, strong supply chains, available capital (or access to credit), loyal customers, patents, copyrights and superior information systems.

Strengths
The Strengths can be considered as anything that is favourable towards the business for example:
Currently in a good financial position (few debts, etc)
Skilled workforce (little training required)
Company name recognized on a National/Regional/Local level
Latest machinery installed
Own premises (no additional costs for renting)
Excellent transport links (ease of access to/from the Company)
Little/non-threatening competition

THE  SWOT  ANALYSIS  --STRENGTHS
-helps   to  identify  the  core compentences  
-helps  how  to  maximize  the  strengths  to  gain
the  maximum  results --sales/profit/market  share/competitive  position.
========================================
Weaknesses
Weaknesses are factors that the company controls that impair its ability to compete with other firms. Weaknesses are any areas in which you need to improve to maintain a competitive edge in your market. Ask questions such as:

• Which departments need to be improved?
• What resources does the company lack?
• What skill sets do the employees lack that competing firm’s workforces have?
• What services does the company fail to offer?

Weaknesses
Recognizing the Weaknesses will require you being honest and realistic. Don’t leave anything out as this is an important part as to realize what needs to be done to minimize this list in the future. Here are a few examples:
Currently in a poor financial position (large debts, etc)
Un-Skilled workforce (training required)
Company name not recognized on a National/Regional/Local level
Machinery not up to date (Inefficient)
Rented premises (Adding to costs)
Poor location for business needs (Lack of transport links etc)
Stock problems (currently holding too much/too little)
Too much waste
THE SWOT   ANALYSIS --WEAKNESS
-helps  to  identify  the weak  points in  terms of  skills/manpower/
resources  etc
-how  to improve / overcome  these  weak  factors.
==================================================
Opportunities
Opportunities are the external factors that will allow your business to succeed against its rivals. Since these are external factors, they may not be under control of the company. Ask questions such as:

• What opportunities for new products or services exist in your market?
• Are new markets available that could provide opportunities for growth?
• Have new technologies been developed that will allow us to compete more effectively?
• Have consumer lifestyles, wants and desires shifted?
• Are the target customers economically healthy?
• Do previously resolved internal problems give the company a competitive edge?

Usually, opportunities reflect the areas where you can excel by changing the company’s marketing strategy. Should new products be launched? Should existing products be promoted to new customer groups? If possible, identify the time frame for each opportunity. Is it something the company must capitalize on by a certain date or will the opportunity last indefinitely?

Opportunities
Keeping in mind what you have listed as your Company Strengths, SWOT Analysis can now influence the Opportunities for the business. These can be seen as targets to achieve and exploit in the future for example:
Good financial position creating a good reputation for future bank loans and borrowings
Skilled workforce means that they can be moved and trained into other areas of the business
Competitor going bankrupt (Takeover opportunity?)
Broadband technology has been installed in the area (useful for Internet users)
Increased spending power in the Local/National economy
Moving a product into a new market sector
THE  SWOT  ANALYSIS -- OPPORTUNITIES
-helps  to  identify  gaps  in the  market  which  can  be  converted  into
opportunities.
-helps to  identify  the  gaps  in  performance , which  can be  exploited.
=======================================
Threats
Threats are factors beyond the control of the company that reduces its competitiveness in the marketplace, adversely affect marketing strategy, or in a worst case scenario, potentially lead to the total demise of the business (think buggy whip manufacturers when automobiles became popular). Although the company has no control over external factors, the key is to identify the threats and draw up contingency plans to negate the threat or soften the impact should an event arise. Ask questions such as:

• Are consumer preferences shifting away from company business lines?
• Is price competition from competitors affecting company profit margins?
• Are new technologies making the company’s products or processes obsolete or unaffordable?
• Are new competitors entering the market space?
• Are suppliers increasing prices?
• Are raw material costs going up due to scarcity or catastrophic events?
• Is the general economy on the downswing?

Classifying threats by the degree of impact and the likelihood of their occurrence is often useful to help identify which threats need to be planned for immediately.

Threats
The final part of the analysis will also be seen as the most feared- the Threats. It has to be done and therefore taking into account what you have listed as your weaknesses, the threats will now all seem too clear. Examples
Large and increasing competition
Rising cost of Wages (Basic wage, etc)
Possible relocation costs due to poor location currently held
Local authority refusing plans for future building expansion
Increasing interest rates (increases borrowing repayments, etc)
End of season approaching (if you depend on hot weather, etc)
Existing product becoming unfashionable or unpopular
THE SWOT  ANALYSIS --THREAT
-helps  to  identify  the  various  threats  like
competition/social /political/economic/technological etc
and  to take  preventive  action.
=========================================
THE  SWOT  ANALYSIS  --STRENGTHS
-helps   to  identify  the  core compentences  
-helps  how  to  maximize  the  strengths  to  gain
the  maximum  results --sales/profit/market  share/competitive  position.

THE SWOT   ANALYSIS --WEAKNESS
-helps  to  identify  the weak  points in  terms of  skills/manpower/
resources  etc
-how  to improve / overcome  these  weak  factors.

THE  SWOT  ANALYSIS -- OPPORTUNITIES
-helps  to  identify  gaps  in the  market  which  can  be  converted  into
opportunities.
-helps to  identify  the  gaps  in  performance , which  can be  exploited

THE SWOT  ANALYSIS --THREAT
-helps  to  identify  the  various  threats  like
competition/social /political/economic/technological etc
and  to take  preventive  action.



LEATHER  PRODUCT  OUTLET
strengths
•   Advantages of proposition?

•   Competitive advantages?
•   USP's (unique selling points)?
•   Resources, Assets, People?
•   Financial reserves, likely returns?

•   Innovative aspects?
•   Location and geographical?
•   Price, value, quality?

•   Processes, systems, IT, communications?
•   Cultural, attitudinal, behavioural?    weaknesses

•   Gaps in capabilities?
•   Financials?
•   Own known vulnerabilities?
•   Timescales, deadlines and pressures?
•   Cashflow, start-up cash-drain?
•   Continuity, supply chain robustness?
•   Effects on core activities, distraction?
•   Morale, commitment, leadership?
•   Accreditations, etc?
•   Processes and systems, etc? •   
opportunities
•   Market developments?
•   Competitors' vulnerabilities?
•   Industry or lifestyle trends?
•   Niche target markets?  
Market response to tactics, e.g., surprise?
•   Partnerships, agencies, distribution?
•   Market volume demand trends?
•   Seasonal, weather, fashion influences?    threats
•   Legislative effects?
•   IT developments?
•   Competitor intentions - various?
•   Market demand?
•   Insurmountable weaknesses?
•   Financial and credit pressures?




HANDICRAFTS  OUTLET
strengths
•   Advantages of proposition?
•   Capabilities?
•   Competitive advantages?
•   USP's (unique selling points)?
•   Resources, Assets, People?
•   Experience, knowledge, data?
•   Financial reserves, likely returns?

•   Innovative aspects?
•   Location and geographical?
•   Price, value, quality?
•   Cultural, attitudinal, behavioural? •      weaknesses

•   Lack of competitive strength?
•   Reputation, presence and reach?
•   Financials?
•   Own known vulnerabilities?
•   Cashflow, start-up cash-drain?
•    
•   Processes and systems, etc?
•   Management cover, succession?
opportunities
•   Market developments?
•   Competitors' vulnerabilities?
•   Industry or lifestyle trend
•   Niche target markets?
•   Market need for new USP's?
•   Information and research?

•   Market volume demand trends?
•   Seasonal, weather, fashion influences?    Threats

•   Legislative effects?
•   Environmental effects?
•   
•   Competitor intentions - various?
•   Market demand?
•   Obstacles faced?
•   Insurmountable weaknesses?

•   Financial and credit pressures?

•   Seasonality, weather effects?









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