How to do a SWOT analysis
Not just how to, but a range of tools and formats to construct and communicate your SWOT analysis.
See our comprehensive list of FREE SWOT templates and other guidelines.
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The Ultimate
SWOT Analysis slide deck
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License and Usage Rights
• RapidBI allows a paying customer a non-exclusive right to use
the contents in your training, education and other
communication needs
• The slides contained in this pack can be copied, edited and
saved by you for your personal and business use
• You cannot sell this product or any product derived from these
contents. You cannot publish more than 10 of these on the
internet for free or paid for access.
• All rights reserved
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―Management tools can help to better understand particular
aspects of an organization or its environment. For the following
step – the analysis of insights provided by the models – however,
there is no model. Management models are effective only if their
users are able to realize connections and gaps and to draw
appropriate conclusions.‖
– DAGMAR RECKLIES
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SWOT is sometimes known as a TOWS analysis or a TOWS
review
THEY ARE THE SAME!
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Introduction to SWOT
A SWOT analysis can be used in a diverse range of environments
& situations. This slide pack contains some text to help you to
explain SWOT in a range of environments as well as a range of
ready to use templates upon which to construct your own SWOT
analysis.
This is not designed as an ―end to end‖ presentation, but of
components with which you can select/ deselect depending on
your application or need
This pack is not meant to be a prescription but a SWOT toolkit. You
use what is right for your organization and situation
It is fully editable, just change the template and add your logo!
Mike Morrison – for RapidBI
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Brief History of SWOT
• The origins of the SWOT analysis technique is credited by Albert
Humphrey, who led a research project at Stanford University in the
1960s and 1970s using data from many top companies.
• The goal was to identify why corporate planning failed. The resulting
research identified a number of key areas and the tool used to explore
each of the critical areas was called SOFT analysis. Humphrey and
the original research team used the categories ―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.‖
• In 1964 Urick and Orr at a conference changed the F to a W, and it has
stuck as that, soFt to sWot
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History – misleading references
• Some researchers reference the 1965 publication ―business
Policy, text and cases‖ by Learned, Christensen, Andrews and
Guth (from Harvard University) in which a framework is used
which closely resembles SWOT, however these words are not
used and certainly the framework is not described as succinctly
as we know it today. In this book the terms used are:
• opportunities,
• risks,
• environment &
• problems of other industries.
• In fact these authors reference a course note from K R Andrews
―a concept of corporate strategy ―for much of the strategy
framework.
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On its own?
• On its own, it is said that a SWOT is
meaningless.
• SWOT works best when part of an overall
strategy or in a given context or situation.
This strategy may be as simple as:
• Goal or objective
• SWOT analysis
• Evaluation or measures of success strategy
• Action
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Applications of SWOT
• An analysis can be used for:
• Workshop sessions
• Brainstorm meetings
• Problem solving
• Planning
• Product evaluation
• Competitor evaluation
• Personal Development Planning
• Decision Making (with force field analysis)
The SWOT is a great tool that can be used in association
with PESTLE & PRIMO-F
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Aim of a SWOT Analysis
• Reveal your competitive advantages
• Analyze your prospects for sales, profitability and product
development
• Prepare your company for problems
• Allow for the development of contingency plans
• A SWOT analysis is a process to identify where you are strong
and vulnerable — where you should defend and attack. The
result of the process is a ‗plan of action‘, or ‗action plan‘.
• The analysis can be performed on a product, on a service, a
company or even on an individual.
• Done properly, SWOT will give you the BIG PICTURE of the
MOST IMPORTANT FACTORS that influence SURVIVAL and
PROSPERITY. As well as a PLAN to ACT ON.
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How to do a SWOT
Irrespective of whether you or your team are future planning for
specific products, work, personal or any other area, the SWOT
analysis process is the same.
• Step 1 – Information collection – In the here and now…
List all strengths that exist now. Then in turn, list all weaknesses
that exist now. Be realistic but avoid modesty!
• You can conduct one-on-one interviews. Or get a group together to
brainstorm. A bit of both is frequently best.
• You‘ll first want to prepare questions that relate to the specific
company or product that you are analyzing. You‘ll find some
questions and issues below to get you going.
• When facilitating a SWOT – search for insight through intelligent
questioning and probing
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How to do a SWOT - cont
• Step 2 – What might be…
List all opportunities that exist in the future. Opportunities are
potential future strengths. Then in turn, list all threats that exist
in the future. Threats are potential future weaknesses.
• Step 3 – Plan of action…
Review your SWOT matrix with a view to creating an action plan
to address each of the four areas.
• In summary:
• Strengths need to be maintained, built upon or leveraged.
• Weaknesses need to be remedied, changed or stopped.
• Opportunities need to be prioritized, captured, built on and
optimized.
• Threats need to be countered or minimized and managed.
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Simple rules for a successful
SWOT analysis
• Be realistic about the strengths and weaknesses of your organization
• The Analysis should distinguish between where your organization is
today, and where it could be in the future.
• Be specific. Avoid gray areas
• Always analyze in relation to your competition i.e. better than or worse
than your competition
• Keep your SWOT short and simple – but only as short and simple as
the application or situation demands – it is about ‗fitness for purpose‘
• Avoid unnecessary complexity and over analysis
• There is no point listing an opportunity (O) if the same opportunity is
available to competitors
• It is pointless to say you have strengths (S) if your competitors have the
same
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Business Planning Process
Purpose/
Mission
Internal External Review
SWOT
SW Review Market Review
OT
PRIMO-F PESTLE
Critical
Issues
Objectives
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Internal Factors of SWot
Use PRIMO-f to cover all the bases:
• P - People
• R - Resources
• I - Innovation
• M - Marketing
• O - Operations
• F - Finance
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External Factors of swOT
Use PESTLE to cover all the external bases:
• P - POLITICAL
• E - Economic
• S - Social
• T - Technological
• L - Legal
• E - Environmental
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A technique to enable professionals to look at everyday problems
and business strategy from new and fresh perspectives
WHAT IS A SWOT ANALYSIS?
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To take advantage of available strengths & opportunities
To minimise the impact of weaknesses and avoid threats
AIM OF SWOT ANALYSIS
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• A Company/ Organization
• A Department or business Unit
• A Business Plan
• A Marketing Plan
• Job Holder
• Job Seeker
WHO NEEDS A SWOT?
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How to do a SWOT
Collect Internal Perform SWOT Communicate &
(PRIMO-F) & Analysis, generate
External data Document,
(PEST/ PESTLE) prioritise Action Plan
In the context of the
desired strategy/
goal
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SWOT
• A widely used framework for organizing and
using data and information gained from
situation analysis
• Encompasses both internal and external
environments
• One of the most effective tools in the analysis
of environmental data and information
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SWOT description
• A SWOT analysis generates information that is
helpful in matching an organization‘s, group‘s or
an individuals goals, programs, and capacities to
the social environment in which they operate
• It is an instrument within strategic planning,
business planning or personal development
planning
• When combined with a dialogue, it is a
participatory process
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SWOT
• Factors affecting a situation can usually be
classified as:
• Internal factors
• Strengths (S)
• Weaknesses (W)
• External factors
• Opportunities (O)
• Threats (T)
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SWOT: internal factors
• Strengths
• Positive tangible and intangible attributes, internal
to an organization. They are within the
organization‘s control
• Weaknesses
• Factors that are within an organization‘s control
that detract from its ability to attain the core goal.
In which areas might the organization improve?
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SWOT: external factors
• Opportunities
• External attractive factors that represent the reason
for an organization to exist and develop. What
opportunities exist in the environment which will
propel the organization?
• Identify them by their ―time frames‖
• Threats
• External factors, beyond an organization‘s control,
which could place the organization‘s mission or
operation at risk. The organization may benefit by
having contingency plans to address them should
they occur
• Classify them by their ―seriousness‖ and ―probability
of occurrence‖
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SWOT: external factors
• Opportunities
• Political
• Economic
• Social
• Technical
• Legal
• Environmental
• Threats
• Political
• Economic
• Social
• Technical
• Legal
• Environmental
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For the external factors
Seriousness of Seriousness of
Impact Impact
LOW HIGH
Probability of Minimum resources if Must plan for
occurrence any
HIGH
Probability of Forget it Maintain flexibility in
occurrence plan
LOW
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Create a plan of action
• What steps can you take to:
• Capitalize on your strengths
• Overcome or minimize your weaknesses
• Take advantage of some new opportunities
• Respond to the threats
• Set goals and objectives, like with any other
plan
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Major benefits of SWOT analyses
• Simplicity
• Flexibility
• Integration and synthesis
• Collaboration
• Lower costs
• Holistic
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Main problems of SWOT analyses
• Lacks structure
• Can be too shallow
• Inaccurate data if all from one person/
perspective
• Simplicity
• Flexibility
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For a productive SWOT analysis
• Stay focused
• Be specific and avoid grey areas
• Keep your swot short and simple
• Avoid over analysis
• Collaborate with other functional areas
• Examine issues from the customers‘/
stakeholders‘ perspective
• Look for causes, not characteristics
• Separate internal issues from external issues
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Stay focused
• It can be a mistake to complete just one
generic SWOT analysis for the entire
organization
• When we say SWOT analysis, we mean
SWOT analyses
• Use the views and data from multiple sources
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Collaborate with other functional
areas
• Information generated from the SWOT analysis
can be shared across functional areas
• SWOT analysis can generate communication
between managers that ordinarily would not
communicate
• Creates and environment for creativity and
innovation
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Examine issues from
stakeholders‘ perspectives
• To do this, the analyst should ask:
• What do stakeholders (and non-stakeholders) believe
about us as an organization?
• What do stakeholders (and non-stakeholders) think of
our product quality, service quality, customer service,
price, overall value, convenience, and promotional
messages in comparison to our competitors?
• What is the relative importance of these issues as
stakeholders see them?
• Taking the stakeholders‘ perspective is the
cornerstone of a well done SWOT analysis
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Look for causes not characteristics
• Causes for each issue in a SWOT analysis can
often be found in the organization‘s and
competitors‘ resources
• Major areas of resources:
• People
• Resources
• Innovation/ Information
• Marketing
• Operational
• Financial
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Separate internal and external
issues
• Failure to understand the difference between
internal and external issues is one of the
major reasons for a poorly conducted SWOT
analysis
• Know yourself
• Know your customer/stakeholder
• Know your competitors – current & future
• Know your environment
• Know your goals
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The elements of a SWOT
analysis
• Strengths and weaknesses – PRIMO-F
• Scale and cost economies
• Size and financial resources
• Intellectual, legal, and value of reputation
• Opportunities and threats - PESTLE
• Trends in the competitive environment
• Trends in the technological environment
• Trends in the socio-cultural environment
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SWOT-driven planning
• Achieving goals and objectives depends on
transforming strengths into capabilities by matching
them with or building on opportunities
• Assessing strengths and weaknesses needs to be
beyond products, services and resources. Look at
processes that meet/exceed customers‘ or
stakeholders‘ needs
• Weaknesses can be converted into strengths with
strategic investment. Threats CAN be converted into
opportunities with the right resources
• Weaknesses that cannot be converted become
limitations which must be minimized if obvious or
meaningful to customers or stakeholders
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The SWOT Analysis Matrix
TRENGTHS EAKNESSES
Internal
Internal Convert factors
factors
Avoid or Minimize
Match/ Align
PPORTUNITIES HREATS
External
External Convert factors
factors
Avoid or Minimize
HELPFUL HARMFUL
To achieving the objectives To achieving the objectives
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A word of caution
• SWOT analysis are often subjective
• Two people rarely come up with the same final
version of a SWOT
• Use it as a guide and not as a prescription
• The more people involved - the more
representative the output
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Use Caution
• SWOT analysis can be very subjective.
• Use it as a tool not the decision maker
• Two or more people rarely come-up with the
same final version of a SWOT situation
review
• Use it as guide and not a prescription or
solution
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Some Simple Rules for SWOT Analysis
• Be realistic about the strengths and
weaknesses of your organization, group or
plan
• Distinguish between where you are today, and
where you could be in the future
• Be specific (SMART): Avoid gray areas
• Always analyze in relation to your mission/
vision
• Keep your SWOT short and simple. Avoid over
analysis
• Empower SWOT with PRIMO-F & PESTLE
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SWOT IS ACRONYM FOR
• Strengths
• Weaknesses
• Opportunities
• Threats
It is a powerful tool or framework to assist in the
planning a strategic process consisting of
both internal and external factors
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STRENGTHS
• Internal positive factors which are under your
control and which you may capitalize on in
planning
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STRENGTHS CONTD..
• What do you do well?
• What unique resources can you draw upon?
• What do others see as your strengths?
• What advantages does the organization
have?
• What you do better than any one else?
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STRENGTHS CONTD..
• What advantage do you have that others
don‘t have, like my special skills, special
connections, education etc?
• Patents
• Strong brand names
• Good reputation among customers
• Cost advantage
• Better technology
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WEAKNESSES
• Internal negative aspects that are under your
control and that you may plan to improve
• What items / areas you have to improve?
• Where do you have fewer / poorer resources
than others?
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WEAKNESSES CONTD..
• What are the points others are likely to see as
your weaknesses?
• What are the points you should avoid?
• Lack of patent/ IP protection
• Weak brand name
• Poor reputation among customers
• High cost structure
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OPPORTUNITIES
• Positive external conditions that you do not
control but of which you can plan to take
advantage
• An unfulfilled customer need
• Arrival of new technology
• Loosening of regulations
• Removal of trade barriers
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OPPORTUNITIES CONTD..
• What are the good opportunities open to you?
• What are the trends you could take advantage?
• How can you turn strengths in to opportunities?
• Changes in population/ demographic profile
• Life style changes
• Local events
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THREATS
• Negative external conditions that you do not
control but the effect of which you may be
able to reduce
• What obstacles do you face?
• If changing technology affecting your position.
• What trends could harm you?
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THREATS CONTD..
• What is your competitor doing?
• What are the threats coming out of your
weakness?
• Do you have cash flow or bad debts
problem?
• Shift in the consumer taste away from the
firm‘s product
• New regulations
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SWOT MATRIX CONTD..
• S-O strategies pursue opportunities that are a
good fit to the company‘s strengths
• W-O strategies overcome weaknesses to
pursue opportunities
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SWOT MATRIX CONTD..
• S-T strategies identify ways to use its
strengths to reduce the vulnerability to
external threats
• W-T strategies establish a defensive plan to
prevent the weaknesses susceptible to
external threats
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SWOT MATRIX CONTD..
• Strengths
• Maintain, build and leverage
• Opportunities
• Prioritize and optimize
• Weaknesses
• Remedy or exit
• Threats
• Counter or innovate
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The purpose of SWOT
Analysis
• It is an easy-to-use tool for developing an
overview of a company‘s strategic situation
• It forms a basis for matching your company‘s
strategy to its situation
• As ―quick and dirty‖ or as comprehensive as you
need
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SWOT is the starting point
• It provides an overview of the strategic
situation.
• It provides the ―raw material‖ to do more
extensive internal and external analysis.
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Opportunities
• An OPPORTUNITY is a chance for firm
growth or progress due to a favorable
juncture of circumstances in the business
environment.
• Possible Opportunities:
• Emerging customer needs
• Quality Improvements
• Expanding global markets
• Vertical Integration
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Threats
• A THREAT is a factor in your company‘s
external environment that poses a danger to
its well-being.
• Possible Threats:
• New entry by competitors
• Changing demographics/shifting demand
• Emergence of cheaper technologies
• Regulatory requirements
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Opportunities and Threats
form a basis for EXTERNAL analysis
• By examining opportunities, you can discover
untapped markets, and new products or
technologies, or identify potential avenues for
diversification.
• By examining threats, you can identify
unfavorable market shifts or changes in
technology, and create a defensive posture
aimed at preserving your competitive position.
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TRENGTHS EAKNESSES
Internal
Internal factors
factors
PPORTUNITIES HREATS
External
External factors
factors
HELPFUL HARMFUL
To achieving the objectives To achieving the objectives
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Our Strengths
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Our Weaknesses
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Our Opportunities
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Our Threats
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SWOT Analysis
SW
HELPFUL HARMFUL
To achieving the objectives To achieving the objectives
STRENGTHS WEAKNESSES
INTERNAL
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FACTORS
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OPPORTUNITIES THREATS
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Risk Guide
Threat to Very serious Serious
Low Impact Little Impact
Risk Number Business business impact
(2) (1)
(5) impact (4) (3)
Very Likely to
Very High (25) High (20) High (15) Mod (10) Low (5)
Happen (5)
11+ Needs
Immediate
Action
Likely (4) High (2) High (16) High (12) Mod (8) Low (4)
6-10
Needs
Moderately Action
High (15) High (12) Mod (9) Mod (6) Low (3)
Unlikely (3)
1-5 No
Unlikely (2) Mod (10) Mod (8) Mod (6) Low (4) Low (2)
action
Very Unlikely
Low (5) Low (4) Low (3) Low (2) Negligible (1)
(1)
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SWOT Analysis Defined
• A SWOT Analysis is a strategic planning tool
used to evaluate the
• Strengths: an organization‘s resources or capabilities that
can be used as a basis for developing competitive
advantage
• Weaknesses: the absence of certain strengths may be
viewed as a weakness.
• Opportunities: an organization‘s potential areas for profit and
growth
• Threats: changes to the external environment may present
threats to the firm
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Traditional SWOT
• The typical practice for conducting a SWOT
Analysis includes the collection and analysis of
an organization‘s Strengths, Weaknesses,
Opportunities, and Threats.
• The results are usually represented in a SWOT
profile, such as the one depicted below:
Strengths Weaknesses
Opportunities S – O Strategies W – O Strategies
Threats S – T Strategies W – T Strategies
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Traditional SWOT Analysis
• S – O Strategies
Pursue opportunities that are a good fit to the
organization‘s strengths
• W – O Strategies
Overcome weaknesses to pursue opportunities
• S – T Strategies
Identify ways an organization can use its strengths to
reduce its vulnerabilities to external threats
• W – T Strategies
Establish a defensive plan to prevent an
organization‘s weaknesses from making it highly
susceptible to external threats
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• RapidBI provide cost effective training materials for
people new to training
• http://rapidbi.com/products/ready-to-use-training-course-
materials-courseware/
• In addition we provide:
• Quality and cost effective employee surveys
• http://rapidbi.com/staffsurvey/
• Business diagnostic tools
• http://rapidbi.com/bir/
• Organizational Development consultancy
• Training for senior leaders
For more information visit
http://RapidBI.com
http://rapidbi.com/products/