Enterpreneurship Development

Entrepreneurship Development

Lesson 11 : SWOT Analysis

Strength and Weakness

Every business needs to evaluate its strengths and weaknesses periodically. The management or an outside consultant reviews the business’s marketing, financial, manufacturing and organizational competencies. In examining its strength and weaknesses clearly, the business does not have to correct all of its weaknesses nor gloat about all of its strengths. They have to slowly overcome their weaknesses and convert it into its strength.
Some of the strengths of an organization are:

1. Availability of necessary infrastructure
2. Adequate production capacity
3. Skilled manpower
4. Good manufacturing practices, quality assurance and quality control
5. Low cost of manufacture
6. Appropriate corporate philosophy on R & D
7. Availability of top R & D personal and budget
8. Facilities for product and process development
9. Good location
10. Wide distribution network
11. Motivated staff
12. Liquidity position
13. Adequate reserve and surplus
14. Brand image
15. Consistency in earning profits
16. Good corporate image
17. Efficient management
18. Philosophy and human resource development
19. Flexible / responsive

If an organization lacks any of these, it will obviously result into its weakness. Let us now look at some of the weaknesses of an organization:-

1. Rising cost of operations
2. Growing union pressures
3. Low level of motivation of staff
4. Non – availability of raw material
5. Scarcity of capital
6. Weal credit worthiness
7. Problem of under utilization of capacity
8. Outdated technology
9. Poor project planning
10. Inadequate infrastructure
11. Shortage of trained technicians
12. Insufficient managerial expertise
13. Unorganized nature of operations
14. Lack of effective co – ordination
15. Inadequate training in skills
16. Feeble structure / poor organization
17. Problems of delegation of authority