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SWOT / PEST Analyses
There is never time to do it right the first time, but there is always time to do it again. - unknown


I would like to make introduction of two very good analyses, which I use from time to time, and to encourage others to read more about them from the list of websites below, where one can find whole presentation and explanation of SWOT / PEST analyses.
In a second round of a job interview I was asked to make SWOT analysis about “Potentials of Navision solution in Serbian ERP market”. At that point I didn’t know anything about SWOT analysis, so I googled about the subject and learned something about SWOT analysis. With regard to the form of SWOT analysis, further researches introduced me to very similar PEST analysis. Both PEST and SWOT analyses are very useful tools understanding and decision-making for all sorts of situations in businesses and organizations.

SWOT is acronym for Strengths, Weaknesses, Opportunities, and Threats factors. PEST is acronym for Political, Economic, Social, and Technological factors, which are used to asses the market for a business. It is helpful completing PEST analysis prior to completing a SWOT analysis as PEST factors are external and SWOT factors are half external (Strengths, and Weaknesses), and half internal (Opportunities, and Threats).

SWOT and PEST are two different perspectives:
- PEST assesses a market, including competitors, from the standpoint of proposition or business.
- SWOT is assessment of a business or a proposition, whether own or competitor’s.

Like I said both analyses are very similar in regard of form and presented as a grid, comprising four sections on sheet of paper, one for each of the SWOT / PEST headings.

Make the questions (customize existing or make new), find the answers, and analyze the answers depending on the subject (market, product, company, brand, business unit, proposition, and idea ).
PEST
Subject of PEST analysis: (define the subject of the analysis here)

political

•  ecological/environmental issues

•  current legislation home market

•  future legislation

•  European/international legislation

•  regulatory bodies and processes

•  government policies

•  government term and change

•  trading policies

•  funding, grants and initiatives

•  home market lobbying/pressure groups

•  international pressure groups

economic

•  home economy situation

•  home economy trends

•  overseas economies and trends

•  general taxation issues

•  taxation specific to product/services

•  seasonality/weather issues

•  market and trade cycles

•  specific industry factors

•  market routes and distribution trends

•  customer/end-user drivers

•  interest and exchange rates

social

•  lifestyle trends

•  demographics

•  consumer attitudes and opinions

•  media views

•  law changes affecting social factors

•  brand, company, technology image

•  consumer buying patterns

•  fashion and role models

•  major events and influences

•  buying access and trends

•  ethnic/religious factors

•  advertising and publicity

technological

•  competing technology development

•  research funding

•  associated/dependent technologies

•  replacement technology/solutions

•  maturity of technology

•  manufacturing maturity and capacity

•  information and communications

•  consumer buying mechanisms / technology

•  technology legislation

•  innovation potential

•  technology access, licensing, patents

•  intellectual property issues
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SWOT
Subject of SWOT analysis: (define the subject of the analysis here)

strengths

•  Advantages of proposition?

•  Capabilities?

•  Competitive advantages?

•  USP's (unique selling points)?

•  Resources, Assets, People?

•  Experience, knowledge, data?

•  Financial reserves, likely returns?

•  Marketing - reach, distribution, awareness?

•  Innovative aspects?

•  Location and geographical?

•  Price, value, quality?

•  Accreditations, qualifications, certifications?

•  Processes, systems, IT, communications?

•  Cultural, attitudinal, behavioral?

•  Management cover, succession?

weaknesses

•  Disadvantages of proposition?

•  Gaps in capabilities?

•  Lack of competitive strength?

•  Reputation, presence and reach?

•  Financials?

•  Own known vulnerabilities?

•  Timescales, deadlines and pressures?

•  Cash flow, start-up cash-drain?

•  Continuity, supply chain robustness?

•  Effects on core activities, distraction?

•  Reliability of data, plan predictability?

•  Morale, commitment, leadership?

•  Accreditations, etc?

•  Processes and systems, etc?

•  Management cover, succession?

opportunities

•  Market developments?

•  Competitors' vulnerabilities?

•  Industry or lifestyle trends?

•  Technology development and innovation?

•  Global influences?

•  New markets, vertical, horizontal?

•  Niche target markets?

•  Geographical, export, import?

•  New USP's?

•  Tactics - surprise, major contracts, etc?

•  Business and product development?

•  Information and research?

•  Partnerships, agencies, distribution?

•  Volumes, production, economies?

•  Seasonal, weather, fashion influences?

threats

•  Political effects?

•  Legislative effects?

•  Environmental effects?

•  IT developments?

•  Competitor intentions - various?

•  Market demand?

•  New technologies, services, ideas?

•  Vital contracts and partners?

•  Sustaining internal capabilities?

•  Obstacles faced?

•  Insurmountable weaknesses?

•  Loss of key staff?

•  Sustainable financial backing?

•  Economy - home, abroad?

•  Seasonality, weather effects?
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More reading:

SWOT
http://cbae.nmsu.edu/~dboje/sbc/pages/page3.html#index
Excellent site

Marketing teacher
http://www.marketingteacher.com/Lessons/lesson_swot.htm
examples, lessons, exercises, and answers.

Bplans
http://www.bplans.com/dp/article.cfm/148
examples, lots of marketing plans

Business balls
http://www.businessballs.com/swotanalysisfreetemplate.htm

QuickMBA
http://www.quickmba.com/strategy/swot/

MindTools
http://www.mindtools.com/pages/article/newTMC_05.htm

Tutor2u
http://www.tutor2u.net/business/strategy/SWOT_analysis.htm

NetMBA
http://www.netmba.com/strategy/swot/

The managers’ electronic resource center
http://erc.msh.org/quality/ittools/itswot.cfm
good

PEST
Marketing teacher
http://www.marketingteacher.com/Lessons/lesson_PEST.htm
examples, lessons, exercises, and answers.

Business balls
http://www.businessballs.com/pestanalysisfreetemplate.htm

12Manage
http://www.12manage.com/methods_PEST_analysis.html

NetMBA
http://www.netmba.com/strategy/pest/

QuickMBA
http://www.quickmba.com/strategy/pest/

MindTools
http://www.mindtools.com/pages/article/newTMC_09.htm

Learn Marketing
http://www.learnmarketing.net/environment.htm

Tutor2u
http://www.tutor2u.net/business/strategy/PEST_analysis.htm

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