‫الجمهورية الجزائرية الديموقراطية الشعبية‬

‫وزارة التعليم العالي والبحث العلمي‬

‫جامعة أبو قاسم سعد هللا الجزائر ‪2‬‬

‫فرع علوم إنسانية واجتماعية‬

‫تخصص إتصال والعالقات العامة‬

‫‪SWOT Analysis‬‬

‫من إعداد الطالبة‪:‬‬

‫بوريب هديل‬

‫‪2024/2023‬‬
I-WHAT IS A SWOT ANALYSIS ?

1-Definition of SWOT analysis

2-Main Purpose of Employing the SWOT Analysis

II- THE COMPONENTS OF SWOT ANALYSIS

1-Internal Analysis
2-External Analysis
3-SWOT Analysis Example

III- Advantages and disadvantages

1-Advantages Of Swot Analysis

2-disadvantages of swot analysis :
Conclusion
Introduction

In today's dynamic business environment, organizations face an array of

challenges and opportunities that necessitate a thorough understanding of their
internal and external landscapes. Strategic decision-making lies at the heart of
organizational success, requiring leaders to assess their strengths, weaknesses,
opportunities, and threats (SWOT) with precision and foresight.

The SWOT analysis framework has emerged as a cornerstone tool in

strategic management, offering a systematic approach to evaluate various facets
of an organization's strategic position.
 I-WHAT IS A SWOT ANALYSIS ?

1-Definition of SWOT analysis :

SWOT Analysis is a tool used for strategic planning and strategic

management in organizations.

It can be used effectively to build organizational strategy and competitive

strategy. In accordance with the System Approach, organizations are wholes
that are in interaction with their environments and consist of various sub-
systems.

In this sense, an organization exists in two environments, one being in itself

and the other being outside.

It is a necessity to analyse these environments for strategic management

practices.

This process of examining the organization and its environment is termed

SWOT Analysis.

“SWOT Analysis is a simple but powerful tool for sizing up an organization’s

resource capabilities and deficiencies, its market opportunities, and the external
threats to its future” (Thompson et al., 2007:)1

2-Main Purpose of Employing the SWOT Analysis

The main purpose to use SWOT analysis is to approach new opportunities

by empowering strengths and also to reduce or stop the progress of threats by
recognizing and eliminating weaknesses in an integrated framework.

The integral purpose that SWOT follows to achieve is identifying the

strategies that provide a business model for the firm that best fits its operations by
employing organizational resources and specifications in alignment with

1
THOMPSON, A, A,, STRICKLAND, A, J, & GAMBLE, J, E, (2007), Crafting and
Executing Strategy-Concepts and Cases, (15th Edition), USA: McGraw-Hill/Irwin,p97
environmental factors. SWOT is all about conducting a study to realize
environmental factors that may affect the firm and finally use it as a tool to predict
the future trends. This will facilitate the decision-making processes in
organizations that have always been accompanied with difficulties

Another common use of SWOT is in cases where an alternative appears all

of a sudden and should be analyzed with regard to the decision-making process.
SWOT analysis is generally known as a method to formulate the organizational
strategy

The purpose that managers and decision-makers follow by employing

SWOT is to acquire a comprehensive understanding about all potential internal
and external factors that may impact the success or failure of their projects. Any
ignorance to identify a key weakness, strength, threat or opportunity may lead a
business to make poor decisions2

II- THE COMPONENTS OF SWOT ANALYSIS

1-Internal Analysis

The analysis of the internal factors should be considered from both an

internal and external basis: does our environment perceive our
strengths/weaknesses as we do? Therefore, the assessment of strengths and
weaknesses is facilitated through surveys or interviews with main users or
customers. Once weaknesses and strengths are delineated, it would be appropriate
to reconfirm these items: different perceptions may exist depending on the
representative group consulted.

2
Osita, Ifediora; Onyebuchi R,, Idoko; Justina, Nzekwe, 2014, Organization’s stability and
productivity: the role of SWOT analysis an acronym for strength, weakness, opportunities
and threat, International Journal of Innovative and Applied Research, Volume 2,p23-32
 1-1-Strengths

A ‘strength’ is something that has a positive implication. It adds value, or

offers your organization a competitive advantage. Strengths include tangible
assets such as available capital, equipment, credit, established and loyal
customers, existing channels of distribution, copyrighted materials, patents,
information and processing systems, and other valuable resources. 3

You may want to look at and evaluate your strengths by function, for example
marketing, finance, production, and support. Looking at things in this way can
make it easier to identify the positive attributes within each function. Certain
teams may have specialist or unique knowledge, education, credentials, contacts,
reputations, or backgrounds that provide a competitive advantage or add value to
your product or service. The sort of questions you can ask to ascertain your
strengths are:

− What do we do well?
− What qualities or aspects persuaded our customers to choose our
product or service?
− What resources do we have at our disposal?
− What do others see as our strengths?

3
Team FME, SWOT Analysis Strategy Skills, ISBN 978-1-62620-951-0,2013,p13
 − What areas are we seen as being expert in?
− What advantages do we have over our competition?

1-2-Weaknesses

These are the characteristics of your product or service that are detrimental
to growth. Weaknesses are those things that detract from the value of your offering
or place you at a disadvantage when compared with your competitors.

An obvious weakness would be an unsuitable location for your organization

Factors that are identified as weaknesses can often be remedied with suitable
investment or restructuring. In the example above, it might be possible to relocate
the business or set up a distribution center in the south of the country, but both of
these things would require changes to the way the business currently operates.

The type of questions you would be asking and discussing to identify your
weaknesses are: 4

− What can be improved or altered?

− What do we do badly?
− How do we compare with others?

4
Eurostat , USE AND PRACTICE OF SWOT ANALYSIS, EMINAR ON STRATEGIC
PLANNING AND PROGRAMMING OF STATISTICAL ACTIVITIES, MOSCOW, 17-
19 OCTOBER 2001, Version: 17 March 2004,p03
 − How does our performance compare with our competitors?
− What have our customers told us?
− How did we respond to this feedback?
− What should we avoid?
− How do third parties judge our performance or service?
− Have we self-imposed any constraints?

2-External Analysis

The external look is complementary to the internal self-study in a SWOT

analysis. Information about the political and socio-economic environment, the
changes in the society, and all changes that have an effect on the NSI but are
beyond its control should be considered in this phase of the study.

Opportunities and threats are not absolute. What might at first seem to be an
opportunity, may not emerge as such when considered against the resources of the
NSI or the expectations of society. Again Opportunities and Threats have to be
reported in a realistic way for their impact on the NSI.

2-1-Opportunities :

Opportunities can be approached in answering the following questions:

Where are the good chances facing us? What are the interesting trends? Useful
opportunities can come from such things as: national or international events,
changes in government policies, changes in technology, changes in user needs or
social patterns, etc.

2-2-Threats :

Threats can come from different horizons and in various forms. Threats need
to be ascertained. Such kind of questions may help to evaluate them: What
obstacles do we face? Are the required specifications for our works, products or
services changing? Is changing technology threatening our position? Do we have
budget uncertainties?5

3-SWOT Analysis Example

There are numerous examples of successful companies that have used

SWOT analysis when developing their business strategies. The example is about
Apple SWOT Analysis 2023

5
ibid
III- Advantages and disadvantages

1-Advantages Of Swot Analysis

− SWOT Analysis is an analysis technique that has a general

perspective and presents general solutions.
− Details and specific issues are not the focus of SWOT Analysis, but
the other analyses that would follow. In this sense, SWOT Analysis
is a road map that guides one from the general to the specific.
− SWOT Analysis is an interactional analysis technique that makes
macro evaluations possible. As an analysis tool, SWOT provides
the opportunity to focus on positive and negative aspects of
internal and external environment of the organization, in another
words the elements in this environment that add plus and minus
value, all together in a related perspective. In this regard, it is also
possible to describe SWOT Analysis as „Two-by-Two Matrix‟.
− SWOT Analysis can help organizational managements to
uncover opportunities to take advantage. By understanding
weaknesses, threats can be managed and eliminated. To examine
an organization and its competitors through SWOT Analysis,
strategies that help distinguish a company from competitors can be
formulated.
− SWOT Analysis forms a thinking model for organizational
managements as an approach and analysis technique. This model
gives one the opportunity to limit the agenda in the steps of
information gathering and interpretation, and shows the points that
the decisions are based on. In other words, SWOT Analysis prepares
the substructure for strategic decisions.
− SWOT Analysis promotes group discussion about strategic
issues and strategy development. By using creative participatory
 techniques such as brain storming, group meetings, it enables the
pool knowledge. 6
− SWOT Analysis helps organizational managements to start a
discussion for the future and goals of the organization by moving
beyond daily problems and the current situation.
− SWOT Analysis can be applied at different analytical levels -
individual level, organizational level, national level, and
international level-.It can be used by educational institutes, non-
profit organizations, countries, governments, projects etc.

2-disadvantages of swot analysis :

No Weighting Factors : SWOT analysis leads to four individual lists of

strengths, weaknesses, opportunities and threats. However, the tool provides no
mechanism to rank the significance of one factor versus another within any list.
As a result, it's difficult to determine the amount of any one factor's true impact
on the objective.

Ambiguity : SWOT analysis creates a one-dimensional model which

categorizes each problem attribute as a strength, weakness, opportunity or threat.
As a result, each attribute appears to have only one influence on the problem being
analyzed. However, one factor might be both a strength and a weakness. For
example, locating a chain of stores on well-traveled streets that grant easy access
to customers might be reflected in increased sales. However, the costs of operating
high-visibility facilities can make it difficult to compete on price without a large
sales volume.7

Subjective Analysis : To significantly impact company performance,

business decisions must be based on reliable, relevant and comparable data.
However, SWOT data collection and analysis entail a subjective process that

6
Sharath Kumar C,R and Prof, Praveena K,B, SWOT ANALYSIS, RESEARCH ARTICLE
,international journal of advanced research ( IJAR), ISSN: 2320-5407,2023,p747
7
Oreski, Dijana, 2012, Strategy development by using SWOT – AHP, TEM Journal –
Volume 1 / Number 4 / 283
reflects the bias of the individuals who collect the data and participate in the
brainstorming session. In addition, the data input to the SWOT analysis can
become outdated fairly quickly.

Conclusion

In conclusion, the SWOT analysis framework stands as a powerful and

versatile tool for strategic decision-making in today's dynamic business
environment. Through a systematic evaluation of an organization's internal
strengths and weaknesses, as well as external opportunities and threats, SWOT
analysis enables leaders to gain valuable insights into their strategic position and
formulate informed strategies to achieve their objectives.