Scenario definition and SWOT analysis

Scenario definition and SWOT Analysis

Teacher: Anahí López Menéndez

Read & Listen

Situational Analysis

Markets must be correctly defined in order to analyze buyers and competition and to forecast future trendsMarkets must be correctly defined in order to analyze buyers and competition and to forecast future trends.

First Scenario of a business

• What is a situational analysis?A situational analysis is a collection of methods used to analyze the internal and external factors in a business. It allows you to use market research to evaluate projected growth, define your potential customers, assess your competitors and evaluate the state of your business.
• SWOT:- Strengths- Weaknesses- Opportunities- Threats

An effective situational analysis includes an examination of both internal and external factors. The key elements for that analysis are:

• Strengths
• Weaknesses
• Opportunities
• Threats

How to complete a situational analysis?

A situational analysis involves using several different methods of critical analysis. Here are the basic steps you follow to complete a situational analysis: 1. Conduct a 5C analysis: + Company + Competitors + Customers + Collaborators + Climate

How to do a SWOT Analysis

A SWOT analysis is a tool you can use both personally and at work to evaluate and make decisions about a particular subject. In this analysis, you will investigate both internal and external factors. Internal factors are positive (strengths) or negative (weaknesses) factors that exist within your organization and are able to be changed or affected in some way. External factors are positive (opportunities) or negative (threats) factors that exist outside of the subject you are evaluating and cannot necessarily be changed or affected by you or your organization in any way.

Let´s look at each area in more detail and consider what questions you could ask as part of your analysis.

Click for aTip:

Using the TOWS Matrix

Developing Strategic Options From an External-Internal Analysis

• TOWS Analysis is a variat of the classic business tool, SWOT Analysis.
• TOWS and SWOT are acronyms for different arrangements of the words Stregths, Weaknesses, Opportunities and Threats.
• The idea is to analyze the external environment, and your internal environment of your whole organization, a department or a team.

Identifying Strategic Options

SWOT or TOWS analysis helps you get a better understanding of the strategic choices that you face. It helps you ask, and answer, the following questions: how do you: + Make the most of your strengths? + Circumvent your weaknesses? + Capitalize on your opportunities? + Manage your threats?

TOWS Matrix © 1982 Heinz Weihrich, Ph.D.

This helps you identify strategic alternatives that address the following additional questions:

Strengths and Opportunities (SO) – How can you use your strengths to take advantage of the opportunities?

Note

Strengths and Threats (ST) – How can you take advantage of your strengths to avoid real and potential threats?

Tip:

Weaknesses and Opportunities (WO) – How can you use your opportunities to overcome the weaknesses you are experiencing?

Weaknesses and Threats (WT) – How can you minimize your weaknesses and avoid threats?

Next..

• Evaluate the options you've generated, and identify the ones that give the greatest benefit, and that best achieve the mission and vision of your organization. Add these to the other strategic options that you're considering.

Key Points

TOWS Strategic Alternatives Worksheet

TOWS Matrix © 1982 Heinz Weihrich, Ph.D.

Example:

Thks!