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Transcript

Hello!! Friends did you get some motivation. In our last class we were discussing about the concept of motivation. I hope now you have clarified your good number of doubts related to motivation and how motivation is an important factor for an entrepreneur. And it is because of this factor entrepreneur becomes an entrepreneur and the most successful entrepreneur. Without motivation it becomes very very difficult.

With the background of the discussion on motivation so now we will be moving towards the discussion on were important issue for an entrepreneur that is conducting the SWOT analysis for an entrepreneur. SWOT analysis is basically the analysis or the inspecting the various factors which influence the business environments through various dimensions. What are these dimensions in SWOT analysis? So, number one it is strengths, the weakness, the opportunities and the threats. So, by understanding the various issues that affect as a part of strengths, or as a part of weakness, or as a part of opportunities, or as a part of threat an entrepreneur can take good number of decisions based on the SWOT analysis, what he was not aware of.

So, let us start with the first element that is the strength. What are these strengths? The strengths  are the company’s core competencies. What are these core competencies? We have a big list of core competencies in the next slide. And to quote some here it may be the proprietary technology which the company is owing, the skilled or the skilled manpower, the resources may be in the form of human resources, or the various other material resources or the market positions, the patents that the company owns etc etc. All these are the strengths of a company. It means it is within the control of an entrepreneur and they occur at present. So right now what are the things that you have at your end so that forms your strengths. So now let us look into some examples. This is not an exhaustive list this is only an indicative list so this constitute the strengths of a company or the organization that you are designing.

Under the strength you can say that the technical expertise may be in the form of manpower or the skilled manpower or highly educated manpower highly trained manpower, so constitutes your strength. And the improved products compared to other competitors in the market so that is what our strength. The good network of customers in many cases, in many products that we see, each and every brand and each and every organization has their own base of customers and that is how you can expand all those things so that becomes another strength of a company. Then the packaging. So as on date  when we look into the packaging of food products and the dairy products and various other products, still we can see a monopoly of a particular company. But, so are there any other competitors or is it that there are no other competitors that are existing, tetra pack is taking lead since many years and maybe it is continuing in the coming years. So, that is what is the strength of that particular company. Then, the managerial experience. So, there are the big business houses in the country which have good number of managers with lots of experience. Be it TATA group or may it be the BIRLA group or may it be the Reliance group so and so forth. There are good numbers of business houses which are having their strength as their trained managers, their experienced managers. The superior technology – so it is subjective discussion so which technology is superior, whether the technology I have it its superior or whether the technology you have it is superior and how we can compete in a market so that is what is your strength. Then the distribution system may be in the form of distribution channels or the outlets whatever it is. So what types of system that you have. So that is your strength and the product features. So the features include the utility, durability etc. If you think of the shoes of liberty which lasts for long but various other brands may be having the short life. So that becomes the strength of that particular shoe. Maybe the quality of the Parle biscuit is comparatively better that becomes the utility factor and that becomes the strength of that company so that is how it continues. Then, comparatively cheaper price this is what aspired by majority of the customers and  the consumers. So, if you are offering the best quality products at the cheapest possible price in the market and that becomes your strength in the market. Then after having discuss various strengths and various issues associated with the strength now let us concentrate upon weaknesses. What are these weaknesses? Many times as an individual we are unable to identify of own weaknesses. Basically, whatever the strength that we have discussed when we add some prefixes like lack of to all those strength that becomes your weaknesses. So, weakness are the conditions within the company that can lead to the poor performance because of this weaknesses and can include obsolete equipment, no clear strategy, heavy debt burden the poor product or poor market image, weak management etc etc. so this is what I said in the beginning itself. So, when we add like prefixes like lack of or the missing of so and so strength, so that becomes your weaknesses. So the moment the entrepreneur becomes aware of these weaknesses so he can take the corrective measures so that is how identification of the weaknesses are very very important for an entrepreneur. So weaknesses are within the control of an entrepreneur and they also occur at the present. In the earlier case also we said that, so it is occurring at the present and the strengths are also under the control of entrepreneur. Similarly, the weaknesses are also under the control of an entrepreneur and they are also occurring at the present. By making corrective measures or by identifying them, by understanding them so you can overcome the weaknesses also and all the weaknesses can be converted into strengths then that is what is the thing, that purpose with which we are discussing about the weaknesses.

The next element that we will be discussing is some weaknesses, so again the list is not exhaustive. So just to quote someone no control over the raw material rather you can have the control, then lack of promotional experience means you are not promoting your own product so that is why it is not being sold in the market, even after been a good quality but because of lack of promotion it is not getting popular in the market. Then the limited product life, the technological obsolescence, then the poor design of the product, inexperienced managers/owners, weak selling efforts, lack of working capital, comparatively high price, low level of stocks in times of peak sales and no technical expertise of owner all these things add to your weaknesses. It is again not an exhaustive list but these are some of the examples wherein we need to understand these things. As, I have already said so these are correct present, so these can be overcome with our deliberate intervention and that is where the role of an entrepreneur come into the picture.

Then now let us move into the next element that is opportunities. The concept of opportunity or the issue of opportunity that we have been discussing since the beginning of this course because as I have already said the opportunities are lying in the environment and they are part of the social systems where we come from. So, they are basically the outside conditions or the circumstances that the company could turn into its advantage so this is what I said. It persist in the environment already. It depends on an individual to tab that one, to identify that one and to translate it to his organizations advantage. So that is where the ingenuity of an enterprise lies and it could include a specialty niche skills which others are not having but my team is having my group is having or my company is having so and so forth or the technology what others don’t have but I have that suddenly realizes a growth in broad marke interest. So these are some of the things that are associated with the opportunities. But the most important issue is opportunities are the favourable factors but they are not under the control of the entrepreneur. It is beyond the control of an entrepreneur. So that’s why I said. So you need to make some deliberate efforts to tap these opportunities but the moment you tap them it means it is going to be your favourable factor. So to list some of the opportunities the examples that what we can quote here is few and weak competitors. You don’t have any control over them. There may be few or there may be many. So if there are few competitors you have a better chance of excelling in the market. So such products in the market. It means you have a monopoly. So, it does not mean that so there are no other competitors that we will be having. So any time any moment you may come across good number of competitors. But till your competitor is not arrived you have an opportunity of excelling in the market and that is, it is listed under opportunity. Then the rising income of the target group and it is a continuous process in the social system. Even you look at the Indian scenario itself so the income levels at the time of time of independence and after lapse of around 70 years what are the income levels of an individual. So there is a constant increase and in the days to come it is going to increase also. So, that is what is an opportunity for an entrepreneur. The scarcity of the product in the locality wherein it is not available but he sole individual who can supply that and the growing demand, favourable government policies right now so there are good number of government policies which are favouring the promotion of entrepreneurship but in the few years back we were not having that type of government policies which is an opportunity for the embedding entrepreneurs. Similar, products making profits it means I also have an opportunity there. If some product is already there I can enter into as a competitor. Then favourable government programs, the policy is something different wherein they are providing you some opportunity but the program they are giving you hands on experience at the same time all possible support so that you each and every individual can get a benefit of that also and so that is the part of the program. Then the technical assistance that is available maybe through the institutions, the research and development organizations, through government program etc etc. The low interest loans that is another opportunity, access to cheap raw material and adequate training opportunities, all these constitute the opportunities. So with this now we move on to last elements that is threats.

The treats are the issues which are highly unfavourable external factors and as an entrepreneur you don’t have any control over the threats. That is another factor associated with the entreprenuer. So, threats include it maybe a future condition the outside the environment and it may harm the company and might include the population shifts, the shift that is taking place maybe due to severe drought, severe flood, or the war like situations, so there are good number of factors that comes into the picture and because of that the entrepreneurship environment changes in that locality is going to be influenced. Then the changes in purchasing preferences of the people. So, earlier we were more attracted towards the chemical based products and we are more attracted towards herbal based products. So now the chemical based products are facing threats in the market and herbal based products are having lots of opportunites in the market and this is how market there is market shift that we can see. Earlier we were talking of the chemical agriculture also but now people are asking for organic products. It means it is an opportunity for the farmer to be a successful entrepreneur. At the same time those who are continuing with the chemical agricuitural practices with intensive use of chemicals so that is threat to the person who is going for that type of practices. So now let us list some of the threats. So again as I have been telling the list is not exhaustive there might be good number of various other issues but these are some of the indicative list. The rising raw material cost is one of the threat for an entrepreneur, too much competition in the market that is going to reduce profit margin your profit margin as well as sustenance of your product. Then the government bureaucracy which we have been discussing over a period of time. So lots of bureaucracy which was ones identified as a red trapezium but over a period of time now it is under control but still we don’t know when the bureaucracy exist or comes into the picture and takes it over the scenario. Then the restive labour force as we have seen in case of West Bengal which was industrial hub at one point of time right now we don’t have much industries there it is because of the restive labour force and the raw material shortage because of over exploitation and unsustainable use of the raw materials whatever it is, or the piracy of the skilled labour. Piracy is the problem that the entire the entire world is facing and that is posing another threat. The natural disasters, the insufficient powers, the graft and corruption there is no alternative for this and every government is making all possible effort to overcome this. Then the poor infrastructure, changing government regulations and smuggling. So these are some of the examples of threats that we can say.

With this so we in this particular class we had a discussion regarding the strengths, the weaknesses, the opportunities and the threats as an entrepreneur one may face and one needs to identify all these four factors for the establishment of the enterprise and accordingly he has to take the decisions. So with this we are closing this particular class. In the next class we will be playing a game known as “Toss the Ring”. Basically the game is having the objective of understanding the concept of Achievement Motivation. The concept of Achievement Motivation we discussed in many circumstances so, that we will be understanding practically by playing the game.

Thank You”>