COMPETITIVE ADVANTAGE

SWOT ANALYSIS

The SWOT analysis is the foundation for developing strategies and tactics that then become the road map for writing business operating plan.

SWOT is commonly used as part of strategic planning and looks at:

• Internal strengths
• Internal weaknesses or Limitation
• Opportunities in the external environment
• Threats in the external environment

So, first when we want to setting the objective, we should be done after the SWOT analysis has been performed. The first thing to do the SWOT analysis is identify about the Strength. Strength is characteristics of the business, or project team that give it an advantage over other. Second part of SWOT is weaknesses or limitation. Weaknesses or limitation look by characteristics that place the team at a disadvantage relative to other. Next, opportunities are external chances to improve performance (e.g. make greater profit) in the environment and the last part of the SWOT analysis considerable about the Threats. The Threats are external elements in the environment that could cause trouble for the business or project.

Besides that, The result of the SWOT analysis also can divided to positive and negative factors for management to address:

	Positive factors	Negative factors
Internal factors	Strengths	Weaknesses
External factors	Opportunities	Threats

Overall, Strength and weaknesses we can relate with the present situation and opportunities and threats related to changes in the environment which will impact the business.

  

PESTLE ANALYSIS

PESTLE analysis stand for:

•         POLITIC
•     ECONOMIC 
•     SOCIAL
•     TECHNOLOGYCAL
•       LEGAL 
•      ENVIRONMENT

PESTLE Analysis is usually used to help organizations identify and understand the external environment in which they operate and how it will operate in the future. It is also are useful tool for understanding the ‘big picture’ of the environment in which an organization is operating. At the same time, it’s also could be as a guideline strategic of decision making. Specifically a PESTLE analysis is a useful tool for understanding risks associated with market (the need for a product or service) growth or decline, and as such the position, potential and direction for an individual business or organization.

Typical PESTEL factors to consider include:

Factor	Could include:
Political	e.g. EU enlargement, the euro, international trade, taxation policy
Economic	e.g. interest rates, exchange rates, national income, inflation, unemployment, Stock Market
Social	e.g. ageing population, attitudes to work, income distribution
Technological	e.g. innovation, new product development, rate of technological obsolescence
Environmental	e.g. global warming, environmental issues
Legal	e.g. competition law, health and safety, employment law