PROBLEMS AND

PROSPECTS OF

SWOT ANALYSIS

ON MARKETING

PLANNING

1
 BY

………………………………..

COLLEGE OF ACCOUNTANCY AND COMPUTER

TECHNOLOGY

Block B, Flat 8, Masoje Estate. PTI Road Effurun. Delta

State. Nigeria.

(AKP/WRR/BMG/BUS/HND2007…………)

A RESEARCH PROJECT WRITTEN IN THE DEPARTMENT

OF BUSINESS ADMINISTRATION, SCHOOL OF BUSINESS

STUDIES. SUBMITTED

IN PARTIAL FULFILMENT FOR THE AWARD OF HIGHER

NATIONAL DIPLOMA (HND) IN BUSINESS

ADMINISTRATION.

NOVEMBER 2009

2
 CERTIFICATION

We certify that this work was carried out by ………………………in

the School of Business Studies, department of Business

Administration, for the award of higher national diploma in

Business Administration.

__________________ ________________
(Supervisor) Centre Co-ordinator

Date __________ Date __________

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 DEDICATION

I dedicate this project to Almighty God for his divine guidance,

grace and mercy throughout my academic pursuit. May all

Glory, Honour, Majesty and power be ascribed unto His Holy

Name in Jesus Name.

ACKNOWLEDGEMENT
4
I am most grateful to the Almighty God for giving me life,

strength and courage to sail through my educational career

despite all odds and obstacles.

In writing this project, I am indebted to my wife, Mrs Favour

Ubido for her contributions; support and encouragement in

making this project work a success.

I will like to use this opportunity to express my sincere thanks

to my brothers and sisters, relatives, friends and loved ones for

their prayers, moral and financial support through this

program.

My profound gratitude goes to my Supervisor Mr Victor

Udofot who despite his crowded schedule, sacrificed time to

read through the manuscript without which this project would

not have seen the light of the day.

My special thanks also goes to my course mates for their

advice, encouragement and assistance.

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In like manner, I wish to acknowledge the effort of all my

lecturers for their principal knowledge imparted on me during

my period of study.

With special thanks to school management team for their

endless love shown to me during the course of my studies.

Finally, thanks to others I cannot remember during the course

of the write up, may God reward every effort of kindness and

love shown during my academic pursuit.

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 ABSTRACT

The SWOT analysis provides information that is helpful in

matching the firm's resources and capabilities to the

competitive environment in which it operates. As such, it is

instrumental in strategy formulation and selection

In this project, attempt was made to examine problems and

prospect of swot analysis on marketing planning.

The writer critically looked into the short comings/impact of

swot analysis , which lead to the establishment of the

objectives of the company under consideration which included;

generating enough surplus to pay back the invested capital to

the investors as early as possible.

To generating surplus for — (i) Expansion, (ii) Improvement of

quality, (iii) Increasing efficiency through introducing new

technology, (iii) Innovative marketing to reach the deeper

layers of low-income people and disadvantaged communities

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and (v) Undertake research and experimentation to improve

and diversify products and services.

In order to arrive at a conclusive decision on the above

objectives the writer carried out an empirical survey and library

research from which the various data were obtained. Based on

the data, two hypothesis formulated by the researcher was

tested using Chi-square analysis to arrive at a better

conclusion. The hypothesis testing was based on primary data

while the secondary data were further analyzed to portray the

state of affairs at various periods.

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 CHAPTER ONE

INTRODUCTION

1.0 THE BACKGROUND OF THE STUDY

SWOT being the acronym for Strengths, Weaknesses,

Opportunities and Threats. It is a simple, much-used

technique which can help to prepare or amend plans, in

problem solving and decision making.

SWOT analysis came from the research conducted at

Stanford Research Institute from 1960-1970. The

background to SWOT stemmed from the need to find out

why corporate planning failed. The research was funded

by the fortune 500 companies to find out what could be

done about this failure. The Research Team were Marion

Dosher, Dr Otis Benepe, Albert Humphrey, Robert Stewart,

Birger Lie.

It all began with the corporate planning trend, which

seemed to appear first at Du Pont in 1949. By 1960 every

Fortune 500 company had a 'corporate planning manager'

(or equivalent) and 'associations of long range corporate

planners' had sprung up in both the USA and the UK.

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However a unanimous opinion developed in all of these

companies that corporate planning in the shape of long

range planning was not working, did not pay off, and was

an expensive investment in futility.

It was widely held that managing change and setting

realistic objectives which carry the conviction of those

responsible was difficult and often resulted in questionable

compromises.

The fact remained, despite the corporate and long range

planners, that the one and only missing link was how to

get the management team agreed and committed to a

comprehensive set of action programmes.

To create this link, starting in 1960, Robert F Stewart at

SRI in Menlo Park California lead a research team to

discover what was going wrong with corporate planning,

and then to find some sort of solution, or to create a

system for enabling management teams agreed and

committed to development work, which today we call

'managing change'.

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The research carried on from 1960 through 1969. 1100

companies and organizations were interviewed and a 250-

item questionnaire was designed and completed by over

5,000 executives. Seven key findings lead to the

conclusion that in corporations chief executive should be

the chief planner and that his immediate functional

directors should be the planning team. Dr Otis Benepe

defined the 'Chain of Logic' which became the core of

system designed to fix the link for obtaining agreement

and commitment.

1. Values

2. Appraise

3. Motivation

4. Search

5. Select

6. Programme

7. Act

8. Monitor and repeat steps 1 2 and 3

We discovered that we could not change the values of the

team nor set the objectives for the team so we started as

the first step by asking the appraisal question ie what's

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good and bad about the operation. We began the system

by asking what is good and bad about the present and the

future. What is good in the present is Satisfactory, good in

the future is an Opportunity; bad in the present is a Fault

and bad in the future is a Threat. This was called the SOFT

analysis.

When this was presented to Urick and Orr in 1964 at the

Seminar in Long Range Planning at the Dolder Grand in

Zurich Switzerland they changed the F to a W and called it

SWOT Analysis.

SWOT was then promoted in Britain by Urick and Orr as an

exercise in and of itself. As such it has no benefit. What

was necessary was the sorting of the issues into the

programme planning categories of:

1. Product (what are we selling?)

2. Process (how are we selling it?)

3. Customer (to whom are we selling it?)

4. Distribution (how does it reach them?)

5. Finance (what are the prices, costs and

investments?)

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 6. Administration (and how do we manage all

this?)

The second step then becomes 'what shall the team do'

about the issues in each of these categories. The planning

process was then designed through trial and error and

resulted finally in a 17 step process beginning with

SOFT/SWOT with each issue recorded separately on a

single page called a planning issue.

The first prototype was tested and published in 1966

based on the work done at 'Erie Technological Corp' in Erie

Pa. In 1970 the prototype was brought to the UK, under

the sponsorship of W H Smith & Sons plc, and completed

by 1973. The operational programme was used to merge

the CWS milling and baking operations with those of J W

French Ltd.

The process has been used successfully ever since. By

2004, now, this system has been fully developed, and

proven to cope with today's problems of setting and

agreeing realistic annual objectives without depending on

outside consultants or expensive staff resources.

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1.1 OBJECTIVES OF THE STUDY

It would have been a total waste of time, efforts, energy

and of course fund, in conducting this research if it was

not meant to achieve any meaningful objectives. The

research would also have been seen as a fruitless exercise

if there were no fundamental objectives to be achieved at

the end of the study. The major objective of the study

therefore was:

Unveiling the problems and prospects of SWOT analysis on

marketing planning. While the subsidiary objectives

provides:

• a framework for identifying and analysing

strengths, weaknesses, opportunities and threats

• an impetus to analyse a situation and develop

suitable strategies and tactics

• a basis for assessing core capabilities and

competences of business plan.

• the evidence for, and cultural key to, change in

organisation

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 • a stimulus to participation in a group

experience.

1.2 THE SIGNIFICANCE OF THE STUDY

The researcher has no doubt whatsoever, that the findings

and conclusion presented and offered respectively in this

study, will be of immense benefit to the following

categories of people among others:

(i) POLICY MAKERS OR FORMULATORS

Makers or formulators of policies, economic planners, and

economic advisers to the chief executives, will find the

recommendation in this study very useful in the

performance of their respective duties. This is so because

they (policy makers economic planners) can use the

research report as a guide while formulating some

important policies.

(ii) OTHER RESEARCHERS

Other researchers can also use the work as a reference

material where and when necessary.

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 (iii) RESEARCH STUDENTS

Research students will equally find the findings and

conclusion offered in this study very useful for further

research and for reference purposes, especially if they

(students) are researching into a related area.

1.3 LIMITATION OF THE STUDY

Research work is subject to one form of limitation or the

other, mine is not an exemption.

It was the initial thought of the researcher that the

exercise was easy but the contrary was the case. As a

student, several academic demands compete with the

limited but precious time available. This implies that none

of the competing exercise could be effectively handled

without the others being worse off.

This was my situation. Although the time expended was

too small to do justice to the study. The opportunity cost

in terms of other equally important activities forgone or

cursorily attended to, was made.

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 The researcher faces some embarrassment arising from

low-level educated staff of the company completing the

questionnaire who could not understand the essence of

the research work as this.

1.4 HYPOTHESIS

It is a conjectural statement of the relationships between

two or more variables. It is testable, tentative problem

explanation of the relationship between two or more

variables that create a state of affairs or phenomenon.

E,C, Osuola (1986 page 48) said hypothesis should always

be in declarative sentence form, and they should relate to

them generally or specially variable to variables.

HYPOTHESIS THUS:

1. Explain observed events in a systematic manner

2. Predict the outcome of events and relationships

3. Systematically summarized existing knowledge.

In essence, there exist NULL HYPOTHESIS set up only to

nullify the research hypothesis and the ALTERNATIVE

HYPOTHESIS for the purpose of the study. For the

efficiency of the study, the hypothesis is as follows:

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Null Hypothesis (HO)

1. The usefulness of SWOT analysis is limited to profit-

seeking organizations.

2.` The greatest strength of SWOT is not its greatest

weakness: flexibility.

Alternative Hypothesis (HI)

1. The usefulness of SWOT analysis is not limited to profit-

seeking organizations.

2. The greatest strength of SWOT is also its greatest

weakness: flexibility.

1.5. STATEMENT OF RESEARCH PROBLEM

The aim of any SWOT analysis is to identify the key

internal and external factors that are important to

achieving the objective. These come from within the

company's unique value chain. SWOT analysis groups key

pieces of information into two main categories:

• Internal factors – The strengths and weaknesses

internal to the organization.

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 • External factors – The opportunities and threats

presented by the external environment to the

organization. - Use a PEST or PESTLE analysis to help

identify factors

The internal factors may be viewed as strengths or

weaknesses depending upon their impact on the

organization's objectives. What may represent strengths

with respect to one objective may be weaknesses for

another objective. The factors may include all of the 4P's;

as well as personnel, finance, manufacturing capabilities,

and so on. The external factors may include

macroeconomic matters, technological change, legislation,

and socio-cultural changes, as well as changes in the

marketplace or competitive position. In considering the

statement of the research problem, the following

questions comes to mind

Strengths:

• What advantages does your company have?

• What do you do better than anyone else?

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 • What unique or lowest-cost resources do you have access

to?

• What do people in your market see as your strengths?

• What factors mean that you "get the sale"?

Consider this from an internal perspective, and from the point

of view of your customers and people in your market. Be

realistic: It's far too easy to fall prey to "not invented here

syndrome". (If you are having any difficulty with this, try writing

down a list of your characteristics. Some of these will hopefully

be strengths!)

In looking at your strengths, think about them in relation to

your competitors - for example, if all your competitors provide

high quality products, then a high quality production process is

not a strength in the market, it is a necessity.

Weaknesses:

• What could you improve?

• What should you avoid?

• What are people in your market likely to see as

weaknesses?

• What factors lose you sales?

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Again, consider this from an internal and external basis: Do

other people seem to perceive weaknesses that you do not

see? Are your competitors doing any better than you? It is best

to be realistic now, and face any unpleasant truths as soon as

possible.

Opportunities:

• Where are the good opportunities facing you?

• What are the interesting trends you are aware of?

Useful opportunities can come from such things as:

• Changes in technology and markets on both a broad and

narrow scale.

• Changes in government policy related to your field.

• Changes in social patterns, population profiles, lifestyle

changes.

• Local events.

A useful approach for looking at opportunities is to look at your

strengths and ask yourself whether these open up any

opportunities.

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Alternatively, look at your weaknesses and ask yourself

whether you could create opportunities by eliminating them.

Threats:

• What obstacles do you face?

• What is your competition doing that you should be worried

about?

• Are the required specifications for your job, products or

services changing?

• Is changing technology threatening your position?

• Do you have bad debt or cash-flow problems?

• Could any of your weaknesses seriously threaten your

business?

Carrying out this analysis will often be illuminating – both in

terms of pointing out what needs to be done, and in putting

problems into perspective.

1.6 THE STRUCTURE OF THE RESEARCH WORK

This research work is to be organized in five chapters as

follows:
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1. Introduction

2. Review of Related Literature

3. Research Methods and Producers

4. Data presentation and Analysis and

5. Findings, Summary and Conclusion

CHAPTER TWO

REVIEW OF RELATED LITERATURE

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1.0 UNDERSTANDING SWOT ANALYSIS

SWOT analysis is a general technique which can be applied

across diverse functions and activities, but it is particularly

appropriate to the early stages of planning.. Performing a

SWOT analysis involves the generation and recording of the

strengths, weaknesses, opportunities, and threats in relation to

a particular task or objective. It is customary for the analysis to

take account of internal resources and capabilities (strengths

and weakness) and factors external to the organisation

(opportunities and threats).

Benefits

SWOT analysis can provide:

*0 a framework for identifying and analysing strengths,

weaknesses, opportunities and threats

*1 an impetus to analyse a situation and develop suitable

strategies and tactics

*2 a basis for assessing core capabilities and competences

*3 the evidence for, and cultural key to, change

*4 a stimulus to participation in a group experience.

Action checklist
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1. Establish the objectives

The first key step in any project: is to be clear on what you are

doing and why. The purpose of conducting a SWOT may be

wide or narrow, general or specific.

2. Select appropriate contributors

Important if the final outcome is to result from consultation and

discussion, not just personal views, however expert.

3. Allocate research and information gathering tasks

Background preparation is a vital stage for the subsequent

analysis to be effective, and should be divided among the

SWOT participants. This preparation can be carried out in two

stages: exploratory, followed by data collection, and detailed,

followed by a focused analysis. Gathering information on

Strengths and Weaknesses should focus on the internal factors

of skills, resources and assets, or lack of them. Gathering

information on Opportunities and Threats should focus on the

external factors over which you have little or no control, such

as social or economic factors.

4. Create a workshop environment

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If compiling and recording the SWOT lists takes place in

meetings, then do exploit the benefits of workshop sessions.

Encourage an atmosphere conducive to the free flow of

information and to participants saying what they feel to be

appropriate, free from blame. The leader / facilitator has a key

role and should allow time for free flow of thought, but not too

much. Half an hour is often enough to spend, for example, on

Strengths, before moving on. It is important to be specific,

evaluative and analytical at the stage of compiling and

recording the SWOT lists - mere description is not enough.

5. List Strengths

Strengths can relate to the group, to the environment, to

perceptions, and to people. "People" elements include the

skills, capabilities and knowledge of participants. Other people

strengths include:

*5 friendly, cooperative and supportive participants

*6 appropriate levels of involvement through delegation and

trust.

6. List Weaknesses

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This session should not constitute an opportunity to focus on

the negative but be an honest appraisal of the way things are.

Key questions include:

*7 what obstacles may prevent progress?

*8 which elements need strengthening?

*9 are there any real weak links in the chain?

It is not unusual for "People" problems - poor communication,

inadequate leadership, lack of motivation, too little delegation

and no trust - to feature among the major weaknesses.

7. List Opportunities

This step is designed to assess the socio-economic,

environmental and demographic factors, among others, to

evaluate the benefits they may bring to the TIPD visit.

Examples include:

*10 the availability of new technology

Bear in mind just how long opportunities might last and how

the group may take best advantage of them.

8. List Threats

The opposite of Opportunities - which may, with a shift of

emphasis or perception, have an adverse impact.

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Weighing threats against opportunities is not a reason to

indulge in pessimism; it is rather a question of considering how

possible negative experience may be limited or eliminated. The

same factors may emerge as both a threat and an opportunity,

for example, Information Technology. Most external factors are

in fact challenges, and whether the groups perceives them as

opportunities or threats is often a valuable indicator of morale.

9. Evaluate listed ideas against Objectives

With the lists compiled, sort and group facts and ideas in

relation to the objectives. It may be necessary for the SWOT

participants to select their five most important items from the

list in order to gain a wider view. Clarity of objectives is key to

this process, as evaluation and elimination will be necessary to

cull the wheat from the chaff. Although some aspects may

require further information or research, a clear picture should,

at this stage, start to emerge in response to the objectives.

10. Carry your findings forward

Make sure that the SWOT analysis is used in subsequent

planning. Revisit your findings at suitable time intervals e.g. on

return from you visit to check that they are still valid.

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Dos and don'ts for SWOT analysis

Do

*11 Be analytical and specific.

*12 Record all thoughts and ideas in stages 5-8.

*13 Be selective in the final evaluation.

*14 Choose the right people for the exercise.

*15 Choose a suitable SWOT leader or facilitator.

Don't

*16 Try to disguise weaknesses.

*17 Merely list errors and mistakes.

*18 Lose sight of external influences and trends.

*19 Allow the SWOT to become a blame-laying exercise.

*20 Ignore the outcomes at later stages of the planning

process.

2.1 SWOT ANALYSIS TEMPLET

Subject of SWOT analysis:

strengths weaknesses
• Advantages of • Disadvantages of proposition?
proposition? • Gaps in capabilities?
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 • 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,
behavioural?
• 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?
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• Lack of competitive strength?
• Reputation, presence and
reach?
• Financials?
• Own known vulnerabilities?
• Timescales, deadlines and
pressures?
• Cashflow, 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?
threats
• Political effects?
• Legislative effects?
• Environmental effects?
• IT developments?
• Competitor intentions -
various?
• Market demand?
• New technologies, services,
ideas?
• Vital contracts and partners?
 • Geographical, export,
import?
• New USP's?
• Tactics - surprise, major • Sustaining internal
contracts, etc? capabilities?
• Business and product • Obstacles faced?
development? • Insurmountable weaknesses?
• Information and • Loss of key staff?
research?
• Sustainable financial backing?
• Partnerships, agencies,
distribution? • Economy - home, abroad?

• Volumes, production, • Seasonality, weather effects?

economies?

• Seasonal, weather,
fashion influences?

2.2 SWOT ANALYSIS EXAMPLE

This SWOT analysis example is based on an imaginary

situation. The scenario is based on a business-to-business

manufacturing company, who historically rely on distributors to

take their products to the end user market. The opportunity,

and therefore the subject for the SWOT analysis, is for the

manufacturer to create a new company of its own to distribute

its products direct to certain end-user sectors, which are not

being covered or developed by its normal distributors.

Subject of SWOT analysis example: the

creation of own distributor company to
access new end-user sectors not currently
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being developed.
strengths
• End-user sales control and
direction.
• Right products, quality and
reliability.
• Superior product
performance vs competitors.
•Better product life and
durability.
• Spare manufacturing
capacity.
• Some staff have experience
of end-user sector.
• Have customer lists.
• Direct delivery capability.
• Product innovations
ongoing.
• Can serve from existing
sites.
• Products have required
accreditations.
• Processes and IT should
cope.
• Management is committed
and confident.
opportunities
• Could develop new
products.
• Local competitors have
poor products.
• Profit margins will be good.
• End-users respond to new
ideas.
• Could extend to overseas.
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weaknesses
• Customer lists not tested.
• Some gaps in range for certain
sectors.
• We would be a small player.
• No direct marketing
experience.
• We cannot supply end-users
abroad.
• Need more sales people.
• Limited budget.
• No pilot or trial done yet.
• Don't have a detailed plan yet.
• Delivery-staff need training.
• Customer service staff need
training.
• Processes and systems, etc
• Management cover
insufficient.
threats
• Legislation could impact.
• Environmental effects would
favour larger competitors.
• Existing core business
distribution risk.
• Market demand very seasonal.
• Retention of key staff critical.
• Could distract from core
 • New specialist applications.
• Can surprise competitors. business.
• Support core business • Possible negative publicity.
economies.
• Vulnerable to reactive attack
• Could seek better supplier by major competitors.
deals.

2.3 EVIDENCE ON THE USE OF SWOT

SWOT analysis may limit the strategies considered in the

evaluation. J. Scott Armstrong notes that "people who use

SWOT might conclude that they have done an adequate job of

planning and ignore such sensible things as defining the firm's

objectives or calculating ROI for alternate strategies." Findings

from Menon et al. (1999) and Hill and Westbrook (1997) have

shown that SWOT may harm performance. As an alternative to

SWOT, Armstrong describes a 5-step approach alternative that

leads to better corporate performance.

2.4 USE OF SWOT ANALYSIS

The usefulness of SWOT analysis is not limited to profit-seeking

organizations. SWOT analysis may be used in any decision-

making situation when a desired end-state (objective) has been

defined. Examples include: non-profit organizations,

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governmental units, and individuals. SWOT analysis may also

be used in pre-crisis planning and preventive crisis

management. SWOT analysis may also be used in creating a

recommendation during a viability study.

2.5 CORPORATE PLANNING

As part of the development of strategies and plans to enable

the organization to achieve its objectives, then that

organization will use a systematic/rigorous process known as

corporate planning. SWOT alongside PEST/PESTLE can be used

as a basis for the analysis of business and environmental

factors.

• Set objectives – defining what the organization

is going to do

• Environmental scanning

o Internal appraisals of the organization's

SWOT, this needs to include an assessment of

the present situation as well as a portfolio of

products/services and an analysis of the

product/service life cycle

• Analysis of existing strategies, this should

determine relevance from the results of an

34
 internal/external appraisal. This may include gap

analysis which will look at environmental factors

• Strategic Issues defined – key factors in the

development of a corporate plan which needs to be

addressed by the organization

• Develop new/revised strategies – revised

analysis of strategic issues may mean the objectives

need to change

• Establish critical success factors – the

achievement of objectives and strategy

implementation

• Preparation of operational, resource, projects

plans for strategy implementation

• Monitoring results – mapping against plans,

taking corrective action which may mean amending

objectives/strategies.

2.6 MARKETING

In many competitor analyses, marketers build detailed profiles

of each competitor in the market, focusing especially on their

relative competitive strengths and weaknesses using SWOT

analysis. Marketing managers will examine each competitor's

35
cost structure, sources of profits, resources and competencies,

competitive positioning and product differentiation, degree of

vertical integration, historical responses to industry

developments, and other factors.

Marketing management often finds it necessary to invest in

research to collect the data required to perform accurate

marketing analysis. Accordingly, management often conducts

market research (alternately marketing research) to obtain this

information. Marketers employ a variety of techniques to

conduct market research, but some of the more common

include:

• Qualitative marketing research, such as focus

groups

• Quantitative marketing research, such as

statistical surveys

• Experimental techniques such as test markets

• Observational techniques such as ethnographic

(on-site) observation

• Marketing managers may also design and

oversee various environmental scanning and

36
 competitive intelligence processes to help identify

trends and inform the company's marketing analysis.

Using SWOT to analyse the market position of a small

management consultancy with specialism in HRM.

Strengths Weaknesses Opportunities Threats

Reputation in Shortage of Well established Large consultancies

marketplace consultants at position with a well operating at a
operating level defined market minor level
rather than partner niche.
level

Expertise at Unable to deal with Identified market Other small

partner level in multi-disciplinary for consultancy in consultancies
HRM consultancy assignments areas other than looking to invade
because of size or HRM the marketplace
lack of ability

Track record –
successful
assignments

2.7 BUSINESS SWOT ANALYSIS

What makes SWOT particularly powerful is that, with a little

thought, it can help you uncover opportunities that you are well

placed to exploit. And by understanding the weaknesses of

37
your business, you can manage and eliminate threats that

would otherwise catch you unawares.

More than this, by looking at yourself and your competitors

using the SWOT framework, you can start to craft a strategy

that helps you distinguish yourself from your competitors, so

that you can compete successfully in your market.

2.8 PROBLEMS WITH SWOT ANALYSIS

The greatest strength of SWOT is also its greatest weakness:

flexibility. Because of the flexibility the SWOT analysis can be

used in a variety of situations, such as developing a career

plan, as we've discussed in a previous article.

But this flexibility means that there can be a number of

irregularities in the data. To overcome this, you can add the

following to your SWOT analysis:

Personal Experience

How do you personally fit into the SWOT analysis? Your

attitudes, experiences, skills, beliefs all have an impact on the

SWOT. Also make note of any biases you might have.

The Proper Order

38
Sometimes the marketing manager will accidentally reverse

opportunities and strengths and threats and weaknesses.

The difference between internal strengths and weaknesses and

external strengths and weaknesses can be difficult to spot.

For example, in the case of global warming, one could mistake

the environmental movement as a threat rather than as an

opportunity.

Weighting

It can be helpful to use percentages while weighing the factors

of the SWOT analysis. For example, Threat A = 15%, Threat B =

80%, Threat C = 5%. Make sure it adds up to 100%.

Emphasize Detail

Details, explanations and justifications are often omitted from

the SWOT analysis. Instead, SWOT analysis reports often just

contain lists of single words.

For example, under opportunities one might find the single

word "technology."

This one word doesn't tell the reader very much. A description

like the following would be much more informative:

39
'Technology makes it possible for marketers to communicate

via mobile phone right up until the point of purchase. This gives

the opportunity of a competitive advantage for our company.'

Writing out detailed descriptions will assist you when deciding

upon how best to weight each of your elements.

Rank and Prioritize

Once you write out the details and you've weighed the

elements and assigned the appropriate percentages, you can

then give your SWOT analysis some strategic meaning. In other

words, you can begin to select those factors that will be the

most important as you create your marketing strategy.

This will be a mix of strengths, weaknesses, opportunities and

threats. You should rank them highest to lowest. Then you

should prioritize those with the highest rank.

For example: if Opportunity C = 50%, Opportunity A = 35%,

and Opportunity B = 15% - your marketing plan should pursue

Opportunity C first, and Opportunity B last.

It is important to focus primarily on opportunities because your

business should be market oriented. Then you'll match

strengths to opportunities and look for a fit. If there are any

40
gaps between current strengths and future opportunities you

should address those.

Also, try to rephrase threats as opportunities (as with the above

global warming and climate change example) and address

weaknesses so that they become strengths.

Perform a "gap analysis" to determine where you are now and

where you want to be. Come up with strategies to bridge the

gap between them.

CHAPTER THREE

RESEARCH METHODS AND PROCEDURES

3.1 RESEARCH DESIGN

The research method selected for the study is a

combination of a survey and an industrial study. The

survey research method is described hereunder that:

(i) It is a design in which primary data is gathered from

members of the sample that represents a specific

population;

41
 (ii) It is a design in which a structure and systematic research

instrument like a questionnaire or an interview schedule is

utilized together with the primary data;

(ii) It is a method in which the researcher manipulates no

explanatory variables because they have already occurred

and so they cannot be manipulated;

(iii) Data are got directly from the subjects;

The subjects give the data the natural settings of their

workplaces;

(iv) The answers of the respondents are assumed to be

largely unaffected of the content in which they are

brought;

(v) The impacts of the confounding factors are “controlled”

statistically; and

(vi) The aim of the research may span from the

exploration phenomena to hypotheses testing (stone

1995).

The survey research method has some merit, which are to

be articulated hereunder: In the survey research method,

42
 the sample of the respondents are selected in such a way

as to make it low due to the utilization of big sample

sizes, which results in generally low sample errors.

The survey research method also has the merit that data

collection takes place in the “natural” settings of the

workplace rather than an activated laboratory. Data are

got directly from the respondents. The advantage that the

survey yields data that suggests new hypothesis is very

illuminating. There is also the merit that a set of

systematic data collection instruments such as

questionnaire interview schedules and observation

gadgets can either be used alone or in conjunction with

other instruments (stone, 1995).

3.2 SAMPLING

Spiegel (1992) observes that sampling theory is a study

of the relationship existing between a population or

universe and the samples drawn from it. The population in

this study is from the senior junior staff of the firms. In

order to make conclusions of sample theory and statistical

43
 references to be valid, a sample must be selected as to

be representative of the population (Spiegel,1992). One

way in which a representative sample may be got, is by

the process of stratified random sampling. In this research

work, the technique of simple random sampling is used to

select the sample of 100 respondents from each group of

the personnel, making a total sample size of 200.

The list of all senior and junior staff of the firm is from the

personnel department of the company. The numbers were

written on a piece of paper, put in a basket and the

papers were folded to cover the numbers and one of the

pieces of paper was selected at a time without replacing it

and any name corresponding to the number becomes a

number of the sample. This method of sampling without

replacement was done until the sample of 100

respondents per group of personnel was arrived at.

3.3 Population

44
 The population, in this study is the totality of the senior

and junior staff of GONEL SYSTEMS LIMITED. PTI ROAD

EFFURUN.

The sample size is 200 and this number of respondents

was chosen from the population. The rationale for

studying a sample rather than the population includes

that:

1. Most empirical research work in the social science

involves studying a sample in place of the population.

2. Statistical Laws reveal that statistics composed

from the sample data are usually reasonably accurate.

3. Luckily, it is usually possible to estimate the level

of confidence that can be placed on the results.

We should note that above is only possible if the

probability sample size is large enough.

3.4 DATA COLLECTION

Questionnaire

As earlier stated, the primary data collection instrument in

this study is the questionnaire. In the questionnaire

45
method of primary data collection, heavy dependence is

placed on verbal reports from the subjects to get

information on the earnings per share and standard set.

The questionnaire has a lot of merits. It needs less skill to

administer. Questionnaire can be administered to a big

number of individuals at the same time. Also with a

specific research budget, it is usually possible to cover a

broader area. The impersonal nature of a questionnaire,

its structure and standardized wording, its order of

question, its standardized instructions for recording

answers might make one to conclude that it offers some

uniformity from one measurement occasion to another

(Selltiz et al, 1976).

Another merit of questionnaire is that subjects may have

a bigger confidence in their anonymity, and thus feel freer

to express views they feel might be disapproved.

Another attribute of the questionnaire that is sometimes,

though not always desirable is that it might place less

pressure on the subjects for immediate response (Selltiz

et al, 1976).
46
The questionnaire also has some demerits. It has noted

that for purpose of giving dependable responses to a

questionnaire, respondents must be considerably

educated. Thus one of the demerits of the usual

questionnaire is that it is appropriate only for with a

considerable amount of education. There is also demerit

that subject may be reluctant and unable.

To report on the particular subject matter. Also, if a

subject misinterprets a question or give his or her answer

in a batting manner, there is often a little that can be

done to ameliorate the situation. In a questionnaire, the

information the researcher gets is limited to the fixed

alternative answer format, when a specific answer is not

available, it can lead to error (Selltiz, 1976).

There is also limitation of memory in reporting on past

facts. The researcher is not a policeman that can compel

answers. That is, the information may not be readily

accessible to subject and thus the subject may be

reluctant to put forth enough alternative information that

he or she is only barely conscious of (Selltiz et al, 1996).

47
In this research project, a structured and undisguised

questionnaire is utilized which is made up of two parts

namely, the personal data section and the section on the

data on the actual subject matter of the work. The

questionnaire was undisguised in the sense that the

purpose of the data collection which was to collect primary

data for writing up the researcher’s HND project was

made know to the 200 respondents. The questionnaire

was structured in the sense the questions are logically

sequenced and are to be asked to the respondents in the

same manner and no follow up questions are to be

allowed. Some of the questions are of the fixed alternative

answer format type.

Ten (10) of the questions have yes or no answers,

Ten (10) of the questions have alternative answer for the

respondents to tick.

The structured questionnaire has the merit that it yields

data that is easier to analysis than data produced by an

unstructured questionnaire. Also the structured nature

48
diminishes both researcher’s and research instrument

biases. It however has the demerit that the rigidity of the

research instrument diminishes the amount of information

that could be got.

Interview

The method of communication of the research instrument

is by means of the personal interview. The method has

the merit that it produces a better sample of the

population than either mail or the telephone methods. It

also has the merit that it gives a very high completion and

response rates. It has the merit that the interview has a

bigger sensitively misunderstandings by the respondents

and gives a chance for clarification of misunderstood

questions. It has the merit that it is a very feasible

method (Selltiz et al, 1976). The personal interview

method has the demerit that it is more costly than the

mail or the telephone methods of communication of a

questionnaire.

Observations

49
 In addition to questionnaire and face-to face interviews,

observation was also carried out. This was to enable the

researcher to witness by herself the officers of this firm

and to interact with these people.

3.5 FIELD WORK

The researcher and three other field data collectors did

the fieldwork. The field data collectors were other

classmates also offering the Part-time HND program, who

have also offered research methodology. They had no

problem gaining entrance into the office under

consideration since one of them has a friend working

there. They were to be trained by the researcher on how

to greet the respondents and how to tick the

questionnaire correctly and honestly.

3.6 DESCRIPTION OF DATA PRESENTATION AND

ANALYSIS TOOLS

50
The data presentation tools are simple bar charts,

histograms, and pictorial tables. The most important parts

of a table include;

(a) Table numbers

(b) Title of the table

(c) Caption

(d) Stub or the designation of the rows and columns

(e) The body of the table.

(f) The head note or prefatory note or explanatory just

before the title.

(g) Source note, which refers to the literally or scientific

source of the table (Mills and Walter 1995)

Anyiwe (1994) has observed that a table has the following

merits over a prose information that;

(f) A table ensure an easy location of the required

figure;

(g) Comparisons are easily made utilizing a table than a

prose information;
51
(h) Patterns or trends within the figures which cannot be

visualized in the prose information can be revealed and

better depicted by a table; and

A table is more concise and takes up a less space than a

prose formation:

The data is to be analysed by means of percentage, cross

tabulation and the chi-square test of population

proportions for testing the two hypothesis. Percentages

express the ratio of two sets of data to a common base of

100. The researcher made us of the computer program

called SPSS (statistical package for social science) to carry

out the computation of the hypothesis testing.

52
 CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 INTRODUCTION

In the previous chapter, the research methods and

procedures have been handled. In this chapter the data

presentation and analysis are to be done. The data is to

be presented by means of tables, two simple bar charts,

one histogram and one pie chart to make it amenable for

further analysis. By analysis is meant the act of noting

relationship and aggregating the set of variables with

similar attributes and also breaking the unit of their

components (Mills and Walters 1995).

53
In this research work, the research accepts the contention

of Podsakoff and Dalton (1995) that the factual

information from the data can be used as a basis for

reasoning, calculation and discussion.

Apart from the heading above, the other headings in this

chapter include:

Data Presentation,

Percentage analysis

Cross-tabulated analysis

Hypothesis testing

54
4.2 DATA PRESENTATION

TABLE 4.1

THE SUMMARY OF THE PERSONAL DATA

OF THE RESPONDENTS

55
1 SEX FREQUENCY

Male 150

Female 50

Total 200 Angles

subtended

2 Marital Status in degree

Married 130

Single 70

Total 200

3 AGE

21-30 years 90

31-40 years 90

41-50 years 10

51-60 years 10

Total 200

4 HIGHER

EDUCATIONAL

QUALIFICATION 18

DIPLOMA 10 54

OND 30 144

HND 80 36

56
 FIRST DEGREE 20 72

SECOND DEGREE 40 36

NIM 20 360

TOTAL 200

The marital statuses of the 200 respondents it is found that

130 of them are married while 70 of them are single. For

the ages of the 200 respondents they are 21-30 years, 31-

40 years, 40-50 years, 51-60 years with frequency of 90,10

respectively. For the educational qualification of the 200

respondents they are diploma, OND, HND, First Degree,

Second Degree, NIM. and they have frequencies of 10, 30,

80, 20, 40 and 20 respectively.

57
Figure 4.1 below shows the simple bar chart of the data on

the sex of the respondents.

160
FIGURE 4.1: THE SIMPLE BAR CHART OF THE DATA ON THE
-
SEX OF THE RESPONDENTS
140
-
GENDER OF THE RESPONDENTS
120
-

100
-
Frequency

80

--
60
-

-
40

MAIL FEMALE
20
Gender

-
0

58
 TABLE 2. GENDER OF THE RESPONDENTS

Frequency percentage Valid Cumulative

Percent Percent
MAIL 150 75.0 75.0 75.0
FEMALE 50 25.0 25.0 100.0
Total 200 100.0 100.0

Source: from data in table 1 (generated from SPSS)

statistical package for social science.

From figure 4.1 above, it is shown that male respondents

have the modal frequency of 150 out of the 200

respondents while the female respondents have the

frequency of 50 of them.

Figure 4.2 below shows the simple bar chart of the data

on the marital statuses of the respondents.

FIGURE 4.2: THE SIMPLE BAR CHART OF THE DATA ON

THE MARITAL STATUSES OF THE RESPONDENTS
59
 -
140

120
-

100 -
80 -
Frequency

60 -
40 -
20 -

-
MARRIED SINGLE
0

Marital status

TABLE 4.3. MARITAL STATUS OF THE RESPONDENTS

Status frequency Percentage Valid Cumulative

Percent Percent
MARRIED 130 65.0 65.0 65.0
SINGLE 70 35.0 35.0 100.0
Total 200 100.0 100.0

From figure 4.2 above, it is shown that the married

respondents have the modal frequency of 130 out of the

60
 200 respondents while the single respondents have the

frequency of 70 of them.

FIGURE 4.3: THE HISTOGRAM OF THE DATA ON THE

AGES OF THE RESPONDENTS.

AGES OF THE RESPONDENTS

100
80
60
Frequency

40
20
0

1.0 2.0 3.0 4.0

Age group

Categories Frequency Percentage Valid Cumulative

Percent
(years) Percentage

21 TO 30 90
TABLE 4. 45.0
AGES OF 45.0
THE RESPONDENTS 45.0

31 TO 40 90 45.0 45.0 90.0

61

41 TO 50 10 5.0 5.0 95.0

 SOURCE: From the data in Table 1.

From figure 4.3 above, it is shown that the age classes

limit are 20.5-30.5 years, 30.5-40.5 years, 40.5-50.5

years and 50.5-60.5 years with frequencies of 90, 90, 10,

and 10 out of 200 respectively. This shows that this is bi-

modal distribution as the age classes of 20.5-30.5 years

and 30. 5-40.5 years have a frequency of 10.

Figure 4.4 below shows the pie chart of the data on the

highest educational qualifications of the 200 respondents.

OND DIPLOMA
FIRST DEGREE
5%
FIG.4.4 THE PIE CHART OF
15% THE DATA ON
OND
THE HIGHEST
SECOND DEGREE 10%
EDUCATIONAL QUALIFICATIONS OF THE 200
RESPONDENTS
20%
HND

80%
FIRST DEGREE 10%
62
 Educational Frequency Percentage Valid Cumulative
level Percentage Percentage

DIPLOMA 10 5.0 5.0 5.0

OND 30 15.0 15.0 20.0
HND 80 40.0 40.0 60.0
FIRST 20 10.0 10.0 70.0
DEGREE
SECOND 40 20.0 20.0 90.0
DEGREE
NIM 20 10.0 10.0 100.0
Total 200 100.0 100.0

TABLE 4. 5 EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

SOURCE: from the data in table 1.

63
 From figure 4.4 above, the Educational Qualifications are

Diploma, O.N.D, First Degree, Second Degree and NIM

and the subtended angles in degrees are equal to 180,

540, 1440, 360, 720 and 360 and respectively at the center

of the circle.

4.3 CROSS-TABULATED ANALYSIS

Table bellow show the analysis of the statuses of the 200

respondents

12
TABLE 6. CROSS-
The usefulnessTABULATION
of SWOT analysis is not 1 2 to profit
limited
making organisations 19
NO
DIPLOMA DON’T 91
6YES 2NO 2 ANSWER
OND KNOW Total

19 7
HND 26
FIRST 60 31
31
DEGREE - 10 9 21
SECOND 31 9
200
DEGREE 21
NIM 100 43 11
Total

39
939

The above table shows that the total of 100 respondents

(out of 200 said YES. This proved that A company does

64
 not die but continue to exist until its name is dissolved

through a legal process.

TABLE 7. Cross-tabulation 2
DIPLOMA 10 10

The greatest strength of SWOTDON’T NOweakness:

is the greatest
OND YES19 NO flexibility Total
19
KNOW ANSWER
HND 14 30 47 91

FIRST

DEGREE 10 9 19

SECOND

DEGREE 40 40

NIM 21 21
The above table indicates
Total 104
that 40A company
47
may
9
own
200

property distinct from the property of its members, 104

respondents out of 200 said yes. While 40 did not agree

with the fact.

4.4 HYPOTHESIS TESTING

In attempting to arrive at decisions about the population,

on the basis of sample information, it is necessary to

make assumptions or guesses about the population

parameter involved. Such an assumption is called

statistical hypothesis, which may or may not be true. The

procedure, which enables the researcher to design on the

65
basis, is sample regards whether a hypothesis is true or

not is called test of hypothesis or test of significance.

The null hypothesis asserts that there is no significant

difference between the statistics and the population

parameters and what ever is observed difference is there,

is merely due to fluctuations in sampling from the same

population. Null hypothesis is thereby denoted by the

symbol H0. Any hypothesis, which contradicts the H0, is

called an alternate hypothesis and is denoted by the

symbol H1. The researcher used chi-square analysis.

CHI-SQUARE TEST

The c is one of the simplest and most widely used non-

parametric test in statistical work. It makes no

assumptions about the population being sampled. The

quantity c describes the magnitude of discrepancy

between theory and observation i.e. with the help of c test

we can know whether a given discrepancy between theory

and observation can be attributed to chance or whether it

66
 results from the inadequacy of the theory to fit the

observed facts. If c is zero, it means that the observed

and expected frequencies completely coincide. The greater

the value of c the greater will be the discrepancy between

observed and expected frequencies.

The formula for computing chi-square is –

c =(O-E)2/E


Where,O=Observed frequency

E=Expected or theoretical frequency

4.5 SOFTWARE USED FOR DATA ANALYSIS:

For the data analysis and the interpretation, the

researcher has adopted advanced version of SPSS

(statistical package for social science). This application

software has facilitated the researcher to construct the

frequency table, various types of charts and to find out

the valid percentage responses from the sample. By this

automated data analysis it has minimized the researcher’s

67
time constraints and reduced human error and give also

accurate outlay of information.

Chi-Square Test (1)

The usefulness of SWOT analysis is not limited to profit

making organisations

Observed Expected Residual Decision

F F
YES 100 50.0 50.0 Accept

NO 43 50.0 -7.0 Reject

DON’T

KNOW 39 50.0 -11.0 Reject

NO 50.0

ANSWER 18 -32.0 Reject

Total 200

Chi-Square Test (2)

The greatest strength of SWOT is the greatest weakness:

flexibility

68
 Observed Expected Residual Decision

F F

YES 104 50.0 54.0 Accept

NO 40 50.0 -10.0 Reject

DON’T

KNOW 47 50.0 -3.0 Reject

NO

ANSWER 9 50.0 -41.0 Reject

Total 200

Residuals

The observed value of the dependent variable minus the

value predicated by the regression equation, for each

case. Large absolute values for the residuals indicate that

the observed values are very different from the predicted

values.

SOURCE: From the questionnaires administered.

The formulated hypothesis that is subject to statistical test

is at 5% level of significance in testing hypothesis, the

calculated value of the test statistics is usually compared

69
with tables of value. The critical values of the test

statistics serve as criterion value. It afforded the basis for

rejecting the null hypothesis is a function of the value of

the tested statistic.

Reject the null hypothesis if the calculated value of the

test statistic is greater than the critical value.

Accept the null hypothesis if the calculated value of the

test statistic is less than the critical value.

TEST STATISTICS

The greatest
The usefulness of SWOT strength of
SWOT is the
analysis is not limited
greatest
to profit making weakness:
flexibility
organisations
Chi-Square 73.880 94.120

df 3 3
70
 note: df = degree of freedom

4.6 SUMMARY OF RESULT

Level of significance……….0.05

Critical value………………………43.0

Calculated value……………………73.880

From the above analysis, it could be seen that in the first

test, the usefulness of SWOT analysis is not limited to

profit making organisations, the calculated value is

greater than the critical value so we reject the hypothesis.

In the second test which state that the greatest strength

of SWOT is the greatest weakness: flexibility, the level of

significance is 0.05, the critical value is 44 while the

calculated value from the test statistics table is 94.120.

Looking the data above, it shows very clear that the

calculated value is greater than the critical value so we

reject the hypothesis.

71
 CHAPTER FIVE

FINDINGS, SUMMARY AND CONCLUSION

1.1 FINDINGS

The researcher discovered during the course of the research that:

-SWOT analysis is a tool for auditing an organization and its

environment.

72
-It is the first stage of planning and helps marketers to focus on key

issues.

-SWOT stands for strengths, weaknesses, opportunities, and

threats.

-Strengths and weaknesses are internal factors. Opportunities and

threats are external factors.

-You can use a SWOT analysis to identify and analyze the Strengths

and Weaknesses of your organization, as well as the Opportunities and

Threats revealed by the information you have gathered on the external

environment.

- To develop a plan that takes into consideration many different internal

and external factors, and maximizes the potential of the strengths and

opportunities while minimizing the impact of the weaknesses and

threats.

5.2 SUMMARY

A scan of the internal and external environment is an important

part of the strategic planning process. Environmental factors

internal to the firm usually can be classified as strengths (S) or

weaknesses (W), and those external to the firm can be

73
classified as opportunities (O) or threats (T). Such an analysis of

the strategic environment is referred to as a SWOT analysis.

The SWOT analysis provides information that is helpful in

matching the firm's resources and capabilities to the

competitive environment in which it operates. As such, it is

instrumental in strategy formulation and selection. The

following diagram shows how a SWOT analysis fits into an

environmental scan:

SWOT Analysis Framework

Environmental Scan

/ \

Internal Analysis External Analysis

/\ /\

Strengths Weaknesses Opportunities Threats

SWOT Matrix

5.3 CONCLUSION

SWOT Analysis is a strategic planning method used to evaluate the

Strengths, Weaknesses, Opportunities, and Threats involved in a project

or in a business venture. It involves specifying the objective of the

74
business venture or project and identifying the internal and external

factors that are favorable and unfavorable to achieving that objective.

The technique is credited to Albert Humphrey, who led a convention at

Stanford University in the 1960s and 1970s using data from Fortune 500

companies.

A SWOT analysis must first start with defining a desired end state or

objective. A SWOT analysis may be incorporated into the strategic

planning model. An example of a strategic planning technique that

incorporates an objective-driven SWOT analysis is Strategic Creative

Analysis (SCAN). Strategic Planning, including SWOT and SCAN

analysis, has been the subject of much research.

• Strengths: attributes of the person or company that are

helpful to achieving the objective.

• Weaknesses: attributes of the person or company that

are harmful to achieving the objective.

• Opportunities: external conditions that are helpful to

achieving the objective.

• Threats: external conditions which could do damage to

the objective.

75
Identification of SWOTs is essential because subsequent steps in the

process of planning for achievement of the selected objective may be

derived from the SWOTs.

First, the decision makers have to determine whether the objective is

attainable, given the SWOTs. If the objective is NOT attainable a

different objective must be selected and the process repeated.

The SWOT analysis is often used in academia to highlight and identify

strengths, weaknesses, opportunities and threats. It is particularly helpful

in identifying areas for development

76