ST.7 Do a SWOT analysis

Transcription

1 ST.7 Do a SWOT analysis Requires dialogue This activity provides guidance on how to perform a strategic analysis of the company using the data you have gathered during the Preliminary Assessment and the SWOT template. INPUT General opportunities and threats from activity PR.5 Identify the general opportunities and threats across the value chain. Strategic opportunities and threats from the activity ST.2 Interview the CEO. Strengths and weaknesses of the company from the activity ST.4 Do a Walk-Through Audit, and ST.5 Do a workshop/interviews with staff. An updated, company-specific list of sustainability impacts with hotspots from the activity ST.6 Update the sustainability hotspots. Key stakeholders from the activity PR.3 Build the right external partnerships. OUTPUTS Categorized set of strategic factors to support strategy development. This output is used in the activities: ST.8 Develop a vision for the company. and ST.9 Define the strategic goals.

2 The starting point for most attempts at strategic analysis is a SWOT matrix. It is useful in helping to make sense of the large amount of data you have gathered so far. It does this by categorising the issues that have been identified into the four categories of SWOT. PESTEL Opportunities & Threats Interview with CEO Once you have completed the SWOT categorization, you may find that you have a lot of issues listed. If this is the case then you should filter out any issues that appear to be significantly less important compared to the rest. The final output of the SWOT analysis is a list of the high priority threats, opportunities, strengths and weaknesses - these will be used in the strategy development. Life Cycle Thinking Sustainability Strengths & Walk-through Audit hotspots Weaknesses S W Interviews/ workshop with staff O T Strategy development activities Other inputs to strategy: Current business strategy Current business model Key stakeholders Value chain vision Figure 7. Data sources and process for the SWOT analysis.

3 HOW TO GO ABOUT IT Template of SWOT 1. Begin by gathering together the following sources of information: Current business strategy (from the interview with the CEO) Current business model (from the business model workshop or desk research) Helpful to becoming more sustainable Harmful to becoming more sustainable Sustainability hotspots (from the Life Cycle Thinking template) Significant opportunities and threats (from the PESTEL analysis and the interview with the CEO) Strengths and weaknesses (from the Walk-through Audit and interviews/workshops with staff) Key stakeholders (from the Life Cycle Stakeholders template) 2. Write a bullet point on a sticky note to summarise each of the sustainability hotspots, opportunities, threats, strengths and weaknesses. (attributes of the company) 3. Place the sticky notes in the appropriate cell of the SWOT template - an example for the Tasty Tuna Company is provided below. Note that sustainability hotspots can be classified as strengths, weaknesses, opportunities of threats depending on the nature of the hotspot. 4. If you find that you have a lot of issues listed (more than 20) you should filter out any issues that appear to be significantly less important compared to the rest. The final output of the SWOT analysis is a list of the high priority threats, opportunities, strengths and weaknesses. (attributes of the environment)

4 SWOT Project Date Version Helpful - to becoming more sustainable Harmful - to becoming more sustainable (attributes of the company) (attributes of the environment) Used during activities ST.7

5 LEARNING CASE STUDY OF SWOT (attributes of the company) Helpful - to becoming more sustainable Well-optimized manual processing of tuna thanks to skilled, loyal workforce. Effective, innovative and adaptable sales and marketing team. Harmful - to becoming more sustainable No internal capacity for packaging material innovation. Low profit margins mean little financial capital for investment. Production Manager due to retire in one year. Lots of female workers but none in Senior Management Team. (attributes of the environment) Some markets interested in sustainably sourced fish. Good relationship with fishermen could be used to encourage more sustainable fishing methods. Significant fish loss and waste between point of catch and point of consumption. Over-fishing and marine eco-system damage becoming an internationally important issue. Unsustainable fishing methods causing tuna stock depletion. Competition from rival tuna processers driving down profit margins. Reports of slavery-like conditions on board some tuna fishing vessels that belong to our suppliers. Rumours that new policy will ban certain unsustainable fishing methods.

6 TIPS & TRICKS FOCUS ON SYNTHESIS As you apply the SWOT analysis procedure it may be possible to identify innovation ideas that would enable the company to address the threats or to capitalize on the opportunities highlighted. However, the aim of this activity is simply to process the data into a more usable summary, which will be helpful when defining the business strategy for the company. BIG TEMPLATE Print the SWOT template on at least A3 size paper to give you enough room for all the sticky notes. CREATE A REPORT You should write up a short report (no more than 10 pages) summarising the data collection and analysis from the Preliminary Assessment, including the SWOT analysis. Ask the CEO and Senior Management Team for feedback, particularly on the SWOT analysis. If you have missed an important issue, of if they do not agree with your conclusions, your efforts in defining a new business strategy will likely take you in the wrong direction. Further information in the Agri-food, Chemicals and Metals Supplements

7 Agri-foods LEARNING CASE STUDY OF SWOT During the PREPARE and SET STRATEGY phase you have gathered information that allows you to proceed with further analysis. Important strategic factors can be summarised in a SWOT matrix. Helpful - to becoming more sustainable Harmful - to becoming more sustainable The following SWOT analysis conducted for Mango Pulp Co. Many of the strengths and weaknesses of Mango Pulp Co. were identified during the walk-through audit and workshop conducted during the preliminary assessment. Others were identified while interviewing the CEO and capturing the current business model. Opportunities and threats are external attributes and were already identified during initial desk research for completing the Target Identification template. The PESTEL template completed during the PREPARE phase provided a number of useful points for completing the SWOT matrix. Opportunities and threats were also identified during the interview with the CEO, in the Life Cycle Stakeholder template and in the Life Cycle Thinking template. (attributes of the company) High quality products available Experienced permanent staff Proximity to suppliers High production capacity and potential to increase production Low yields in mango processing Unsteady cash-flow Expensive waste disposal Manual labour-intensive production process Limited capacity for product development Lack of quality control Use of toxic chemical during ripening Use of chlorine during washing (attributes of the environment) Little competition in the domestic market Good relationship with suppliers of raw materials such as mango sale agents, chemical suppliers and sugar suppliers Growing demand for sustainably produced food in the export market Diversification of products Unstable quality and quantity of raw materials Untrained farmers causing large losses of mango Climate change negatively affecting mango supply Instability of labour Strong competition in the export market

8 LEARNING CASE STUDY OF SWOT (attributes of the company) Helpful to becoming more sustainable High quality finished textile products delivered quickly and on time High quality ink and dye manufacturing capability for tailored solutions Well-equipped and talented R&D / QC department as well as line operators IT-based CRM integrated system (marketing, sales, production, delivery, etc.) Good customer relations Strong financial position Existing cooperation with local university Harmful to becoming more sustainable High energy and water costs due to non-optimised equipment and batch processes Significant hazardous waste from ink production and printing processes (high VOC content) Fugitive VOC emissions (operation/cleaning) causing worker complaints High amount of wastewater causing concerns in nearby local community (attributes of the environment) Consumers demand high quality and sustainably produced textiles Corporations looking to demonstrate sustainability practices Governments promoting Green Public Procurement policies (e.g. school uniforms) Technologies exist for chemical recycling of synthetic fabrics or manufacturing from renewable resources Certain markets looking for sustainable solutions to necessary but little-used clothing (e.g. parents of infants/toddlers) Large multinational brands pushing for zero discharge of hazardous substances throughout the supply chain (especially wet textile processing) Large amounts of waste PET bottles in region that could serve as an alternative raw material for textiles Cheap imports driving down profit margins Raw material price volatility, especially relating to polyester and pigment materials Quick turnover of clothes produce large amount of waste leading to environmental and health challenges Increasing electricity and fuel (Diesel, NG) prices Large multinational brands pushing for zero discharge of hazardous substances throughout the supply chain (especially wet textile processing) Lack of public day-care and healthcare obstacle for women to participate in workforce

9 LEARNING CASE STUDY OF SWOT Helpful - to becoming more sustainable Harmful - to becoming more sustainable (attributes of the company) Skilled, loyal workforce Location close to neighbouring region Retail shop linked to the production site Production diversification possibilities: production of multi-purpose bikes Significant amount of waste/emissions Scrap metal Over spray sludge (including lead in paint) Solvent emissions Lack of production manager Gender inequality No systematic production line High retail price (attributes of the environment) Customers demand high quality more affordable and sustainable Good relationship with customers Demand for improved customer services (repair, maintenance, warranty) Low impact on environment Multi-functionality of bikes Raw material price volatility Waste generation along the bicycle life cycle Competitive market (local and international) Low retail prices No waste management system (end-of-life bicycles) High costs of high quality parts