Weaknesses in the organization. Assessing the strengths and weaknesses of the organization based on swot analysis

SWOT analysis- this is the determination of the strengths and weaknesses of the enterprise, as well as the opportunities and threats emanating from its immediate environment ( external environment). Any organization is located and operates in an environment. Every action of all organizations without exception is possible only if the environment allows its implementation.

The external environment is the source that supplies the organization with the resources necessary to maintain its internal potential at the proper level. The organization is in a state of constant exchange with the external environment, thereby providing itself with the opportunity to survive.

The internal environment of an organization is the source of its lifeblood. It contains the potential that allows an organization to function, and, consequently, to exist and survive in a certain period of time. But the internal environment can also be a source of problems and even the death of an organization if it does not ensure the necessary functioning of the organization.

The study of the internal environment is aimed at understanding what strengths and weaknesses an organization has. Strengths serve as the basis on which the organization relies in its competitive struggle and which it should strive to expand and strengthen. Weaknesses are the subject of close attention by management, who must do everything possible to get rid of them.

To get a comprehensive picture of the internal environment of an organization and its weaknesses, it is necessary to identify a number of factors influencing it and give them an analysis. SWOT method is a widely accepted approach that allows for the joint study of external and internal environments. The SWOT methodology involves first identifying strengths and weaknesses, as well as threats and opportunities, and then establishing chains of connections between them, which will later be used to formulate the organization's strategy.

In general, conducting a SWOT analysis comes down to filling out the matrix shown in Fig. 1, so-called " matrices SWOT analysis" The strengths and weaknesses of the enterprise, as well as market opportunities and threats, must be entered into the appropriate cells of the matrix.

Figure 1 - SWOT analysis matrix

Strong sides business - something that it excels at or some feature that provides you with additional features. Strength may lie in your experience, access to unique resources, advanced technology and modern equipment, highly qualified personnel, the high quality of your products, the fame of your trademark and so on.

Weak sides enterprise is the absence of something important for the functioning of the enterprise or something that you are not yet successful in comparison with other companies and puts you at a disadvantage. Examples of weaknesses include a too narrow range of products, a poor reputation of the company in the market, lack of financing, low level service, etc.

Market possibilities are favorable circumstances that a company can use to gain an advantage. Examples of market opportunities include the deterioration of the positions of your competitors, a sharp increase in demand, the emergence of new technologies for the production of your products, an increase in the level of income of the population, etc. It should be noted that opportunities in terms of SWOT analysis are not all opportunities that exist in the market, but only those that your business can exploit.

Market threats- events the occurrence of which may have an adverse impact on the enterprise. Examples of market threats: new competitors entering the market, rising taxes, changing consumer tastes, declining birth rates, etc.

One and the same factor for different enterprises can be both a threat and an opportunity. For example, for a store selling expensive products, an increase in household income may be an opportunity, as it will lead to an increase in the number of customers. At the same time, for a discount store, the same factor can become a threat, since its customers, with rising salaries, may move to competitors offering a higher level of service. So,

Step 1. Definition strong And weak sides The first step of a SWOT analysis is to assess your own strengths. The first stage will allow you to determine what the strengths and weaknesses of the enterprise are. In order to determine the strengths and weaknesses of the enterprise, you need to:

• - Make a list of parameters by which you will evaluate the enterprise;
• - For each parameter, determine what is strong point enterprises, and what - weak;
• - From the entire list, select the most important strengths and weaknesses of the enterprise and enter them into the SWOT analysis matrix (Fig. 1).

The main components of the SWOT matrix can be determined using the expert method.

Let's illustrate this methodology example. To evaluate the enterprise we will use the following list parameters:

• - Organization(here the level of qualifications of employees, their interest in the development of the enterprise, the presence of interaction between departments of the enterprise, etc. can be assessed)
• - Production(can be assessed production capacity, quality and degree of wear and tear of equipment, quality of manufactured goods, availability of patents and licenses (if necessary), cost of your products, reliability of supply channels for raw materials and supplies, etc.)
• - Finance(production costs, availability of capital, capital turnover rate, financial stability of the enterprise, business profitability, etc. can be assessed)
• - Innovation(here the frequency of introduction of new products and services at the enterprise, the degree of their novelty (insignificant or dramatic changes), payback period for funds invested in the development of new products, etc.)
• - Marketing(here you can evaluate the quality of goods/services (how your consumers evaluate this quality), brand awareness, completeness of assortment, price level, advertising effectiveness, enterprise reputation, effectiveness of the sales model used, range of additional services offered, qualifications of service personnel).

Next, Table 1 is filled out: the assessment parameter is written in the first column, and the strengths and weaknesses of the enterprise that exist in this area are written in the second and third columns. For example, Table 1 shows several strengths and weaknesses for the “Organization” and “Production” parameters.

Table 1 - Determining the strengths and weaknesses of your enterprise

After this, from the entire list of strengths and weaknesses of the enterprise, it is necessary to select the most important ones (the strongest and weakest sides) and write them down in the appropriate cells of the SWOT analysis matrix (Fig. 1).

It is optimal if you can limit yourself to 5-10 strengths and the same number of weaknesses, so as not to experience difficulties in further analysis.

Step 2. Definition market opportunities And threats. This stage will allow you to assess the situation outside the enterprise and understand what opportunities the enterprise has, as well as what threats you should be wary of (and, accordingly, prepare for them in advance).

The method for determining market opportunities and threats is almost identical to the method for determining the strengths and weaknesses of an enterprise:

• 1. Make a list of parameters by which you will evaluate the market situation;
• 2. For each parameter, determine what is an opportunity and what is a threat to the enterprise;
• 3. From the entire list, select the most important opportunities and threats and enter them into the SWOT analysis matrix.

Example. The following list of parameters can be taken as a basis for assessing market opportunities and threats:

• 1. Demand factors (here it is advisable to take into account the market capacity, the rate of its growth or contraction, the structure of demand for the enterprise’s products, etc.)
• 2. Factors competition(one should take into account the number of main competitors, the presence of substitute products on the market, the height of barriers to entry and exit from the market, the distribution of market shares between the main market participants, etc.)
• 3. Sales factors (it is necessary to pay attention to the number of intermediaries, the presence of distribution networks, conditions of supply of materials and components, etc.)
• 4. Economic forces(the exchange rate of the ruble (dollar, euro), the level of inflation, changes in the level of income of the population are taken into account, tax policy states, etc.)
• 5. Political And legal factors(the level of political stability in the country, the level of legal literacy of the population, the level of law-abidingness, the level of government corruption, etc. are assessed)
• 6. Scientific and technical factors(usually the level of development of science, the degree of introduction of innovations (new goods, technologies) into industrial production, the level of government support for the development of science, etc. are taken into account)
• 7. Socio-demographic factors(one should take into account the size and age-sex structure of the population of the region in which the enterprise operates, the birth and death rates, the level of employment, etc.)
• 8. Socio-cultural factors (usually the traditions and value system of society, the existing culture of consumption of goods and services, existing stereotypes of people’s behavior, etc. are taken into account)
• 9. Natural And environmental factors(taking into account climate zone, in which the enterprise operates, state environment, public attitude towards environmental protection, etc.)
• 10. And finally, international factors (among them, the level of stability in the world, the presence of local conflicts, etc. are taken into account)

Table 2 - Determination of market opportunities and threats

Then you need to select the most important ones from the entire list of opportunities and threats. To do this, each opportunity (or threat) must be assessed on two parameters by asking two questions: “How likely is it that this will happen?” and “How much will this affect my business?” Select those events that are likely to happen and will have a significant impact on the business. These 5-10 opportunities and approximately the same number of threats are entered into the corresponding cells of the SWOT analysis matrix (Fig. 2).

So, the SWOT analysis matrix is ​​completed, and we see in front of us full list the main strengths and weaknesses of the enterprise, as well as the prospects opening up for the business and the dangers that threaten it.

Step 3. Comparison strong And weak parties With market opportunities And threats will answer the following questions regarding the further development of your business:

• 1. How can I take advantage of emerging opportunities by leveraging the company's strengths?
• 2. What weaknesses of the enterprise can prevent me from doing this?
• 3. What strengths can be used to neutralize existing threats?
• 4. What threats, compounded by enterprise weaknesses, should I be most concerned about?

To compare the capabilities of an enterprise with market conditions, a slightly modified SWOT analysis matrix is ​​used (Table 3).

Table 3 - SWOT analysis matrix

POSSIBILITIES 1. Emergence of a new retail network 2. etc.	1. Emergence of a major competitor 2. etc.
STRENGTHS 1. High quality products 3. etc.	1. How to take advantage of opportunities Try to become one of the suppliers new network, focusing on the quality of our products	2. How you can reduce threats To keep our customers from switching to a competitor by informing them about the high quality of our products
WEAK SIDES 1. High production cost 3. etc.	3. What can prevent you from taking advantage of opportunities? The new network may refuse to purchase our products, since our wholesale prices are higher than those of competitors	4. The most great dangers for the company An emerging competitor can offer the market products similar to ours at lower prices

By filling out this matrix, we find that:

• 1. determined basic directions development enterprises(cell 1, showing how you can take advantage of emerging opportunities);
• 2. formulated basic Problems enterprises that need to be resolved as quickly as possible for successful business development (the remaining cells of Table 3).

Next stage there will be a determination of the optimal strategy through which the enterprise can actually improve results at minimal cost.

So way, SWOT analysis- this is the identification of the strengths and weaknesses of the enterprise, as well as the opportunities and threats emanating from its immediate environment (external environment), the comparison of which allows us to determine what steps can be taken for the development of the enterprise, and what problems urgently need to be solved.

After conducting a SWOT analysis, you can more clearly understand the advantages and disadvantages of the enterprise, as well as the market situation. This will allow you to choose the optimal path for business development, avoid dangers and make the most efficient use of available resources, while simultaneously taking advantage of the opportunities provided by the market.

Fragment from the book Simkin L., Dibb S.
“A Practical Guide to Market Segmentation”

A3.1. Introduction

Any segmentation begins with a comprehensive study of the market situation in which the company operates and an assessment of the types of opportunities and threats it may face. The starting point for this review is SWOT analysis, one of the most common types of analysis in marketing. Simply put, SWOT analysis identifies and structures a firm's strengths and weaknesses, as well as potential opportunities and threats. This is achieved due to the fact that managers must compare the internal strengths and weaknesses of their company with the opportunities that the market gives them. Based on the quality of compliance, a conclusion is made about the direction in which the organization should develop its business and ultimately the distribution of resources among segments is determined.

This chapter will examine the strengths, weaknesses, opportunities and threats in relation to the segments or markets being studied. Determining the relative importance of each of the listed components of SWOT requires a wide range of input data. After studying this chapter, you will build a SWOT analysis for each of your segments.

Objects within each element (for example, strengths) will be ranked by importance: the most important strength will come first, then the second, and so on.

A3.2. Rules for conducting SWOT analysis

The simplest form of presenting the results of a SWOT analysis is shown in Fig. A3.1: Strengths, weaknesses, opportunities and threats are listed. Because of its conceptual simplicity, SWOT has become easily applicable to managers and equally susceptible to misuse. It requires neither extensive databases nor formal training. Anyone with even a little knowledge of the company and an understanding of the market can create a simple SWOT. On the other hand, the inherent simplicity of the analysis can lead to hasty and meaningless conclusions, full of vague and ambiguous concepts such as product performance, modern equipment, and prices. In addition, users sometimes forget about objectivity and rely on outdated or unreliable information.

Rice. A3.1. SWOT analysis

To avoid these mistakes and get the most out of your SWOT analysis, follow these simple rules.

Rule 1. Carefully define the scope of each SWOT analysis. Companies often conduct general analysis, covering their entire business. It will likely be too general and unhelpful to managers interested in opportunities in specific markets or segments. Focusing a SWOT analysis, for example on a specific segment, ensures that its most important strengths, weaknesses, opportunities and threats are identified.

Rule 2. Understand the differences between the SWOT elements: strengths, weaknesses, opportunities and threats. Strengths and weaknesses are internal features of the company, and therefore controllable by it. Opportunities and threats are related to the characteristics of the market environment and are beyond the influence of the organization.

Rule 3. Strengths and weaknesses can only be considered as such if that is how customers perceive them. Only the most relevant strengths and weaknesses should be included in the analysis. Remember that they must be determined in light of competitors' proposals. A strength will only be strong if the market sees it as such. For example, the quality of a product will only be a strength if it performs better than competitors' products. And finally, there can be a lot of such strengths and weaknesses, so that you won’t understand which of them are the main ones. To avoid this, strengths and weaknesses must be ranked according to their importance in the eyes of buyers.

Rule 4. Be objective and use diverse input. Of course, it is not always possible to conduct an analysis based on the results of extensive market research, but on the other hand, it cannot be entrusted to one person, since it will not be as accurate and in-depth as an analysis carried out in the form of group discussion and the exchange of ideas. It is important to understand that a SWOT analysis is not just a list of managers' suspicions. It should be based as much as possible on objective facts and research data.

Rule 5. Avoid lengthy or ambiguous statements. Too often, a SWOT analysis is weakened by the inclusion of statements that likely mean nothing to most buyers. The more precise the wording, the more useful the analysis will be. This is confirmed by Fig. A3.2. By the way, buyers will perceive it as a poorly defined, meaningless statement. This element needs to be broken down into several more significant components from the buyer’s point of view: modern equipment?

Other statements from Fig. 1 can be analyzed in a similar way. A3.2. Some of the resulting components will be relevant to buyers, some will not. The point is that you should only include those that are perceived by the market and customers as important.

Rice. A3.2. Example of a bad SWOT analysis

A3.3. Elements of the internal environment: strengths and weaknesses

Strengths and weaknesses can hide a variety of aspects of a company's activities. Below are the categories most often included in the analysis. Each SWOT is unique and may include one or two of them, or even all of them at once. Each element, depending on customer perception, can be both a strength and a weakness.

• Marketing.
  Product
  Pricing
  Promotion
  Marketing information/intelligence
  Service/staff
  Distribution/Distributors
  Brands and positioning
• Engineering and development of new products. The closer the connection between marketing and technical department, the more important these elements will be. For example, a strong relationship between the new product development team and the marketing department allows customer feedback to be directly used in the design of new products.
• Operational activities.
  Manufacturing/Engineering
  Sales and Marketing
  Processing orders/transactions
• Staff.
  Research and development
  Distributors
  Marketing
  Sales
  After sales/service
  Customer Service/Service

This includes skills, wage and bonuses, training and development, motivation, working conditions of people, staff turnover. All of these elements are central to the successful implementation of a customer-centric marketing philosophy and marketing strategy.

• Management. Sensitive and often controversial, but sometimes requiring changes, management structures directly determine the success of implementing a marketing strategy. Such aspects should be reflected in the analysis.
• Company resources. Resources determine the availability of people and finances, and thus affect a company's ability to capitalize on specific opportunities.

A3.4. Elements of the external environment: opportunities and threats

Opportunities and threats are outside the organization's control. Thus, they can be considered as external, relating to elements of the market environment. The environmental analysis that should have already been completed by now (see Analysis 2) can serve as an excellent starting point for this part of the SWOT analysis. Key elements to consider include:

• legislative/regulatory/political forces. Actions by authorities in the form of enforcement of policies, as well as legislative and regulatory requirements to which companies must comply;
• social forces (culture). Directly affects the company when dissatisfied customers put pressure on organizations whose activities are perceived as unacceptable;
• technological forces. The technological capabilities that help a company achieve its goals influence the products that are offered to customers and how they respond;
• economic situation. Influence general condition economy, under the influence of which consumer demand and spending habits are formed;
• competition. Nature and scale of competitive threat. Special attention The following points deserve:

Intensity of competition
Threat of new competitors
Customer needs in the market
Market power of buyers, distributors, suppliers
Competitiveness
Pressure from substitute products

A3.5. Registration of data for SWOT analysis

For each of the markets or segments being considered, you need to list the most important (most relevant/impacting business) elements across all four categories: strengths, weaknesses, opportunities and threats (see Table A3.1). In each of them, the wording should be ordered by importance: threat number one comes first, and so on. The SWOT should be as focused as possible: for example, if necessary, then for each new market or group of buyers, build separate table. There is no point in listing everything possible and impossible: limit yourself only to those elements that have greatest influence to your company. Be objective. Can you back up your claims with evidence (quotes, letters, industry statistics, press reports, government publications, dealer reports, customer comments)? Remember that the analysis should be focused on the customer, not internal to the organization. When considering your next application, it is useful to ask yourself the following questions.

• Are we sure that this is actually the case?
• How confident are we?
• How do we know?
• Is it possible that this will change soon?
• Does this statement have relevance/meaning/meaning to our customers?
• Have we considered this position in relation to competitors?

In practice, a SWOT analysis is often prepared for each leading competitor and for individual markets. This reveals the company's relative strengths and weaknesses, its ability to deal with threats and seize opportunities. This exercise is useful in determining the attractiveness of existing opportunities and assessing the firm's ability to pursue them.

Table A3.1 SWOT analysis

What should be done:

• Rank the statements in order of possibility.
• Include only the main statements/aspects.
• Have evidence to support them.
• Strengths and weaknesses must be considered in relation to competitors.
• Strengths and weaknesses are internal aspects.
• Opportunities and threats are external aspects of the market environment.

What are the main conclusions that can be drawn from this?

A3.6. Summary

In this chapter, we covered conducting a SWOT analysis for each market or segment under consideration. This approach is simple, but it also allows the company to examine existing opportunities in the market and weigh its ability to pursue them. At the same time, threats that could undermine the company’s position are also studied. Strengths and weaknesses are viewed from the buyer's perspective, which provides a realistic basis for resource allocation decisions and helps the company make the most of the opportunities available to it.

Checklist: Strengths, Weaknesses, Opportunities and Threats
We recommend reading and completing the following checklist.

1. What you should know
Before moving on to the next chapter, you should create a SWOT analysis for each market. To do this, it is necessary to study the internal strengths and weaknesses of the company and identify the opportunities and threats that exist in its external market environment. The elements of each of the four categories must be ranked. The result of the analysis should be conclusions for the company. If you serve more than one market, you must complete the appropriate forms for each.

If you have not yet gathered the information necessary to do this, we strongly recommend that you return to this chapter at the earliest opportunity, and certainly before selecting target segments and creating positioning strategies.

2. The table must be completed
Check your progress: have you completed the table?

A 3.1: SWOT analysis

Be prepared to return to the table if/when additional information becomes available.

3. Information collected
The following types of information are required for this chapter. Please indicate what stage of collection of relevant information you are in.

Information

Collected

Going to

Not collected

ELEMENTS OF THE INTERNAL ENVIRONMENT
Marketing
Engineering and Product Development
Operational activities
Staff
Management
Company resources
Other

ELEMENTS OF THE EXTERNAL ENVIRONMENT
Legislative forces
Regulatory forces
Political forces
Social (cultural) forces
Economic forces
Technological forces
Competition Influence and power of suppliers
Consumer purchasing power
Other

In strategic planning, the most significant role belongs to analysis of the strengths and weaknesses of the enterprise(ACC). Using this procedure, it is possible to simply and quickly establish management’s positions regarding its own production. Joint participation in ACC creates a stronger awareness problematic situation managers of the enterprise, which is extremely important for developing ways to solve future problems.

Questionnaire methodology for analyzing strengths and weaknesses

Grade strengths and weaknesses requires the definition of criteria in all critical areas of production responsibility. An in-production management seminar is the most suitable place to implement this task. Based on the data obtained, specialists create a questionnaire.

The analysis criteria proposed by management and production management should be cataloged and reduced to a list. After this, the resulting criteria are grouped based on areas of responsibility. Then the criteria are assessed using various scales. For example - from plus three to minus three or from zero to plus three. A categorical assessment can also be used: “weak”, “strong”, “average”. An example for the blocks of management, finance, marketing and sales can be seen in table. 1.

Table 1. Analysis of the strengths and weaknesses of the enterprise

Ratings marked with any sign in each criterion are subject to summation and then division by the number of respondents participating in the survey. Thus, we have informationally valuable average ratings at our disposal, which are included in the free form. Based on this data, a broken line is constructed, which is a graphical representation of the profile of the strengths and weaknesses of production.

Summarizing the results of the analysis requires considering positive and negative assessments of the enterprise in an atmosphere of free criticism.

Why is it important to involve your most important customers in your analysis?

Sometimes you should contact the most significant customers (up to 20) with an offer to participate in the survey. This step will provide management with information about the views of the company's most important clientele. This information will provide data on competing industries.

The result of the analysis of data from the study of strengths and weaknesses

The result of a detailed investigation, first of all, of the weaknesses of production is new goal setting and planning of measures to level and eliminate these weaknesses.

The effectiveness of developing strategic plans for an enterprise can be significantly increased by analyzing strengths and weaknesses. The result of this is an additional strengthening of strengths. Development of a set of measures, the purpose of which will be to transform the weaknesses of the enterprise into strengths. In this case, management should take into account the fact that it is necessary to provide appropriate funds to ensure the continuous process of implementing the above-mentioned activities.

Based on accumulated experience, an annual analysis of the strengths and weaknesses of production minimizes possible risks by identifying possible areas of future threats. The data obtained during the analysis process becomes a kind of basis for improving the functioning of the enterprise. Information based on the results of the analysis demonstrates whether there is a need to change the policy of the enterprise, in what ways it is worth clarifying the process of developing plans, modernizing the control and regulation system, developing the organizational structure and improving the management information system in order to timely bring to the attention of the enterprise management data on departure from the set goals .

What are the main reasons for the emergence of sources of threats to production?

According to the research results, it turned out that a large number of enterprises are exposed to threats and risks that they could have avoided if they had eliminated their own weaknesses in time. Other enterprises find themselves in difficult situations due to the carelessness of management, who did not bother to identify negative consequences and threats as a result of decisions made and did not consider their impact on production safety. Sometimes top management is guided by established business policies, despite the fact that the goals have long been achieved, and it is necessary to radically review and change the very policies of the enterprise.

Efficiently functioning industries quickly adapt to changing market conditions. Other enterprises cannot boast of high organization in many areas of their activities. Often this involves pursuing policies that are beyond their capabilities and limitations.

Which parties are most vulnerable for most businesses?

In most cases, the weaknesses of the enterprise are:

1. administrative block;
2. financial block;
3. marketing and sales block;
4. production unit;
5. logistics block;
6. organizational block;
7. staff;
8. block of research and development work.

Questioning is the key to effective cooperative management based on the results of an analysis of the strengths and weaknesses of the enterprise.

An annual thorough study of the state of affairs in the above-mentioned areas of the enterprise’s functioning should be carried out using the analysis of data obtained as a result of a survey.

Only with close cooperation of all production management is an effective outcome of this procedure possible. Questioning helps develop managers' ability to think comprehensively, aimed at identifying hidden shortcomings and possible sources threats.

It should be borne in mind that the survey results only demonstrate problem areas. Each department must make proposals to optimize the efficiency of its own activities. Careful consideration and agreement with management of the proposals received should become the basis for strategic planning events.

The management of all departments involved in modernization should conduct active consultations and provide comprehensive assistance in the implementation of the above activities. Should be fixed in job descriptions, which of the managers is responsible for the implementation process of each of the activities, and who should provide advisory assistance. All this together should lead to an improvement in the cooperative management style.

Analysis of the strengths and weaknesses of an enterprise is a very important area in the activities of an enterprise. The SWOT analysis method can effectively help with this and is widely used by businesses all over the world. A modern manager must be fluent in this method.

SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. A qualitative analysis of the prospects of an enterprise is carried out in order to clarify the above-mentioned aspects of its activities, the opportunities opening up to it and the impending threats. The strengths and weaknesses of an enterprise must be assessed in the context of its competitiveness. SWOT analysis helps develop an understanding of the circumstances in which a company operates. This method helps you balance your internal strengths and weaknesses with the opportunities and threats that the enterprise will have to face. This analysis helps to determine not only the capabilities of the enterprise, but also all available advantages over competitors. Below are sample groups of questions for conducting a SWOT analysis. The first two groups concern internal factors. Strengths and weaknesses are analyzed. The second group of questions concerns external factors and includes opportunities and threats.

When designing questionnaires, keep in mind that lists that are too long lead to ambiguity or vagueness and make it difficult to identify what is really important. Strengths should be based only on facts. Thus, this method helps to identify key success factors (KSFs), i.e. strengths and weaknesses of the enterprise that have the greatest impact on the success of its activities.

Internal factors. Strengths:

■ competence;

■ availability of sufficient financial resources;

■ presence of good competitive skills;

■ good reputation among consumers;

■ recognized leadership of the enterprise in the market;

■ the company has well-thought-out strategies in this area of ​​activity;

■ availability of own technologies High Quality;

■ availability of cost advantages for products and services;

■ having advantages over competitors;

■ ability to innovate, etc.

Weak sides:

■ lack of strategic direction;

■ marginal position in the market;

■ presence of outdated equipment;

■ low level of profitability;

■ unsatisfactory level of management;

■ poor control;

■ weakness compared to competitors;

■ backwardness in innovation processes;

■ narrow range of products;

■ unsatisfactory image on the market;

■ low marketing skills among staff;

■ lack of sufficient funding for projects, etc.

External factors. Favorable opportunities:

■ work with additional consumer groups;

■ introduction to new markets or market segments;

■ expanding the range of products to satisfy a wider range of consumers;

■ product differentiation;

■ the ability of the enterprise to quickly move to more profitable strategic groups;

■ confidence in relation to rival firms;

■ rapid market growth, etc.

Threat factors:

■ arrival of new competitors;

■ increasing sales of similar products;

■ slow market growth;

■ unfavorable tax policy of the state;

■ changes in the needs and tastes of customers, etc.

Summarizing the above, a manager must be able to determine what strengths his enterprise has, and not only see, but also admit its weaknesses. He must recognize what opportunities exist for the enterprise and take into account those threats that may prevent it from capitalizing on opportunities.

Based on the analysis, at the second stage, a SWOT matrix is ​​compiled, shown in Fig. 4.2.

Managing threats and taking advantage of existing opportunities requires more than just being aware of them. If a business is aware of a threat but does not confront it, it may fail in the marketplace. On the other hand, an enterprise may have information about new opportunities, but not have the resources to implement them.

SWOT analysis involves interactive use of the matrix. On the left, two sections are highlighted (strengths, weaknesses), into which all the characteristics of the enterprise identified at the first stage of the analysis are respectively entered.

At the top of the matrix, two sections are highlighted (opportunities and threats), and at the intersection of these sections, four fields are formed for further research:

1) “SIV” (strength and capabilities);

2) “SIU” (force and threats);

3) “SLV” (weakness and opportunity);

4) “SLU” (weakness and threats).

All relevant entries are entered into these fields as suggestions as a result of an analysis of the interaction of the above characteristics.

It is clear from the matrix that the most favorable opportunities for the existence of an enterprise are opened by the “SIV” field. This field allows you to use the strengths of the enterprise in order to benefit from emerging opportunities. The “SLV” field allows you to try to overcome the existing weaknesses of the enterprise using the opportunities that have emerged. The “SIS” field presupposes the possibility of using the enterprise’s forces to eliminate threats. The SLU field is the most dangerous for the enterprise. It is characterized by the weakness of the enterprise's position and the danger of an impending threat.

The manager must also be aware that opportunities and threats can turn into their opposites. Thus, unused opportunities of an enterprise can become a threat if a competitor uses them in time. On the other hand, a successfully prevented threat can provide a company with a strong position if competitors have not eliminated the same threat.

Strength and weakness, opportunities and threats of an enterprise, the most convenient and proven way to assess the strategic position of a company is SWOT analysis.

The strength of an enterprise is what it excels at: skills, experience, resources, achievements (advanced technology, better customer service, brand recognition, etc.).

Weakness is the absence of something important in the functioning of the company, something that it fails in comparison with others. Once strengths and weaknesses are identified, they are carefully studied and assessed. From the point of view of strategy formation, the strengths of an enterprise can be used as the basis for an anti-crisis strategy. If they are not enough, enterprise managers urgently need to create the basis for this strategy. At the same time, a successful anti-crisis strategy is aimed at eliminating the weaknesses that contributed to the crisis situation. Market opportunities and threats also largely determine the anti-crisis strategy of an enterprise. To do this, all industry opportunities that can ensure the potential profitability of the enterprise and threats that negatively affect the enterprise are assessed. Opportunities and threats not only influence the state of the enterprise, but also indicate what strategic changes need to be made. A crisis strategy must take perspectives that match opportunities and provide protection against threats. An important part of the SWOT analysis is the assessment of the strengths and weaknesses of the enterprise, its opportunities and threats, as well as conclusions about the need for certain strategic changes.

To evaluate Slavyanka OJSC, you can use the following list of parameters:

1. Organization (here the level of qualifications of employees, their interest in the development of light industry, the presence of interaction between departments of the enterprise, etc. can be assessed)

2. Production (production capacity, quality and degree of wear and tear of equipment, quality of manufactured goods, availability of patents and licenses (if necessary), cost of production, reliability of supply channels for raw materials and supplies, etc. can be assessed)

Finance (production costs, availability of capital, rate of capital turnover, financial sustainability of production, business profitability, etc. can be assessed)

Innovation (here the frequency of introduction of new products and services, the degree of their novelty (minor or dramatic changes), payback periods for funds invested in the development of new products, etc. can be assessed)

Marketing (here you can evaluate the quality of goods/services (how this quality is assessed by consumers), the completeness of the assortment, the price level, the effectiveness of advertising, reputation, the effectiveness of the sales model used, the range of additional services offered, the qualifications of service personnel).

Table 11. Determination of strengths and weaknesses

Identifying strengths and weaknesses
Evaluation options	Strengths	Weak sides
1. Organization	- High level of qualifications and entrepreneurial spirit of the manager - Corporate management of the enterprise is considered as an important means of increasing the efficiency of the enterprise, ensuring greater availability and reducing the cost of capital, strengthening the reputation
2. Production	- Proven and reliable supplier of raw materials. - The cost of production is lower than that of regional competitors - Brands have high recognition rates - The loyalty of many Russians to the domestic product, who believe that our products are more reliable; - Effective management warehouse resources - Valid for company employees efficient system motivation, safe and comfortable working conditions are created, opportunities for professional growth and development are offered, and a certain level of social security	- Product quality is inferior to some competitors - High degree wear and tear of certain types of equipment, buildings and structures
3. Finance		- Uneven flow Money
4. Innovation	- Usage modern technologies and modern production equipment. As a result of modernization, the main production processes were fully automated and significantly reduced production costs, the level of labor productivity has been increased and the quality of products has been improved - The company makes significant investments in innovative developments, allowing, among other things, to find alternative analogues of certain raw materials - integration in the areas of production and development of new products
5. Marketing	- Effective advertising campaign.	- The need to establish guaranteed sales. - For Western enterprises, marketing costs are approximately 70-80% of the total cost of the product. Slavyanka’s budget does not allow it to compete on equal terms with global players in this field;

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Analysis of the internal potential of Tekhnosila LLC makes it possible to determine its strengths and weaknesses in business, and allows us to assess their relationship with environmental factors; The main task of external analysis is to identify and understand opportunities and threats that may exist in the present or arise in the future. Assessing strengths and weaknesses is the most important start to improving the activities of any enterprise.

The analysis of the organization’s external environment was carried out on the basis of consideration of economic, political, market, competitive, technological, social and international factors enterprises and identifying among them the most significant factors based on the size, nature of activities, goals and other specific features of the organization in question.

Lists of the organization's weaknesses and strengths, as well as external opportunities and threats, are used to construct the SWOT matrix (Table 2.20).

Let's analyze potential external opportunities and threats to the enterprise (Table 2.18).

Table 2.18. - Potential external opportunities and threats to the enterprise

Analysis of the internal environment of the organization consisted of examining the main functional areas of the organization in order to identify its strategic strengths and weaknesses. The study included identifying the most significant factors internal environment, characterization of their condition and development trends, assessment of the direction and degree of influence of factors on the organization.

All internal, strengths and weaknesses of the enterprise, according to the analysis, are presented in Table 2.19:

Table 2.19 - Potential internal strengths and weaknesses of the enterprise

The SWOT matrix allows you to trace possible combinations of characteristics of the external environment (opportunities and threats), which are recorded at the top of the matrix, with the strengths and weaknesses of the organization, which are recorded on the left side of the matrix (Table 2.20):

Table 2.20 - SWOT Matrix

	Opportunities (O) 1. Opportunity to enter new Russian and foreign markets. 2. Vertical integration. 3. Weakening the position of competing firms. 4. Financial opportunity to absorb less solvent competitors 5. Constant updating of the product range by manufacturing companies.	Threats (T) Costly legal customs requirements. Economic crisis - falling purchasing power. Market saturation household appliances. Growing demands of consumers and suppliers. Distance from the largest Asian markets - higher transportation costs for delivering products to consumers
Strengths (S) A clearly organized enterprise development strategy. 2. Use of advanced advertising and PR technologies. 3. High image of the enterprise. 4. Improving accounts receivable management.	I “Strength and Opportunities” 1. Introduction of fundamentally new types of technical products. 2. Entering new markets. 3. Increase in sales volumes. 4. Gaining a new market share.	II “Power and Threats” 1. Increase in the number of clients in the previous market segment. 2. Introduction of new sales technologies. 3. Constant innovation activity.
Weaknesses (W) 1. Insufficient mobility of the enterprise. 2. High dependence on declining demand and stage life cycle enterprises. 3. Increase in distribution costs; 4. Poor inventory management.	III “Weaknesses and Opportunities” 1. Study of the management system. 2. Improvement of the inventory management system. 3. Redistribution of functions.	I V “Weakness and threats” 1. Technical renewal through equipment modernization. 2. Modernization of the accounting department. 3. Reducing distribution costs.