BCom SWOT Analysis Notes Study Material
BCom SWOT Analysis Notes Study Material: We provide to all the students of Bachelor of Commerce. BCom 1st, 2nd, and 3rd Year Business Communication Notes Study material, Business Communication question answer, sample papers, mock test papers, and pdf. At gurujistudy.com you can easily get all these study materials and notes for free. Here in this post, we are happy to provide BCom SWOT Analysis Notes Study Material.
BCom SWOT Analysis Notes Study Material
It is essential for a person/institute/organisation/business unit to know its own reality. It should be well aware of its weaknesses and strength, so that it may remove the weaknesses and improve and add more strength. It means, it should be aware of bringing about continuous improvement, when we use the process of analysis for a person/institute/organisation/business unit to make them aware of their strengths weaknesses/opportunities/threats, then this process is known as SWOT analysis.
According to Philip Kotler the overall evaluation of a company’s strengths, weaknesses, opportunities and threats is called the SWOT analysis. (BCom SWOT Analysis Notes Study Material)
SWOT analysis is done to know the organisation’s own strengths and weaknesses which refer to internal; and opportunities and threats which refer to external or environmental. (BCom SWOT Analysis Notes Study Material)
SWOT is made of four words which means strength, weaknesses, opportunities and threats.
SWOT analysis is used in an organisation to prepare effective organisational strategies by knowing its strength and weakness and also by identifying the opportunities available in the business environment along with the threats present.
An effective organisational strategy is that wherein an organisation/business unit utilizes all its strength to get the maximum advantage from the available opportunities and by minimising the impact of its present weakness, is able to neutralize the problems.
In other words, SWOT analysis tells how a business unit can utilize its capacity to gain maximum advantage from the available opportunities, by minimising the weaknesses and by deciding how to keep all the problems and bottlenecks away from the business unit.
Components of SWOT Analysis. The main components of SWOT analysis are as follows:
(1) Environment. It refers to all those situations, events, and happenings under which an organisation has to function. These are of two types:
(i) External environment,
(ii) Internal environment.
External environment. It means the environment which affects the organisation from the outside. The external environment provides opportunities to a business unit and also presents threats, i.e., creates problems for the business unit.
Internal environment. It is created by internal elements. These elements provide strength to the business unit and also make it weak. The environment, in which a business unit is functioning, can be divided into two parts:
(i) Opportunities and threats which are present in the external environment,
(ii) Strengths and weaknesses which are present in the internal environment.
(2) Strength. It refers to all the elements that are present in the organisation and are utilized to gain competitive advantages. For example, an organisation may have better research facilities and better possibilities for development, which become its strength. This R and D is used to innovate new products and to improve the existing management systems. Organisations or business-unit should prepare a list of positive qualities which are directly related to their progress. Positive qualities and good behaviour mean efficiencies and capacities.
(3) Weaknesses. This refers to the organisation’s limitations. These limitations are its weaknesses. They make the organisation weak in competing with other units. For example, if a business unit is too much dependent on its one part-production line only, then it has some limitations which act as barriers. If a person wants to be aware of his limitation or weaknesses then he has to ask several questions to himself, like Is he a good communicator? Is he computer literate? Does he talk with confidence?
(4) Opportunities. All the favourable situations for a unit in the business environment are known as opportunities for that unit. Such situations, when identified, motivate the unit to face the competitors with greater confidence and make the unit strong. Here, a person or business unit should ask itself whether it is capable of utilizing the opportunity available to it. Does he possess the ability to bring excellence to the organisation? (BCom SWOT Analysis Notes Study Material)
(5) Threats. Environmental situations unfavourable to a business unit present themselves as threats. These are harmful to the organisation. In the case of a person, he must know what are the problems in the way of his promotion or in the way of his career, so that he is aware of it and can act to remove or face them. A person/institution/organisation/business unit should analyse its weaknesses and threats and should frame such a strategy/plan so that the weaknesses are turned into its strength and threats into opportunities.
One should never adopt the attitude of complete satisfaction. One should always have high goals and targets and try to reach greater heights of excellence. One should never feel depressed, dejected or defeated. Never go for fixing such targets or goals which are not possible to achieve, otherwise, failure will have its negative effect. This does not mean that high ideals and thoughts are to be avoided.
SWOT analysis helps in understanding the atmosphere and thereby to take appropriate policy decisions. To remove or to find solutions to the problems of external and internal environment, is necessary for the progress of an organisation or business unit. To frame a suitable strategy and implement it properly depends on the careful analysis of the external and internal environment of an organisation.
A Swot Analysis of Urban Co-operative Banks
The objective of Urban Co-operative Banks is to encourage self-dependence saving habits and cooperation among members/customers. They collect savings and advance loans to members/customers according to their needs and as per rules and regulations. They provide all the financial facilities to their members/customers as approved by the Registrar, Cooperative Department.
SWOT Analysis in the Business Planning Process
During the past some years the performance of Urban cooperative banks has been appreciable. Continuous expansion of their sources and business confirms the above fact. There is continuous pressure on these banks to provide new and better services. If we examine the internal position of these banks, we find that their sources of income have been increasing but their profits are continuously going down. On the other hand, the pressure of external forces of the environment has been greatly affecting the activities of these Banks.
Under these circumstances SWOT analysis of Co-operative Banks is necessary. SWOT analysis of Urban Co-operative Bank is as follows:
(i) Self-reliance. The basis of running the business of these banks is the income sources generated by them. Thus, it is a successful and self-reliant institute in the cooperative sector. (BCom SWOT Analysis Notes Study Material)
(ii) Educated members. The members of this bank are all literate and, therefore, they are well aware of their rights and responsibilities.
(iii) Intimate knowledge of customers. This bank is a small organisation and locally situated and therefore, all the members of the bank know their customers personally. Thus, they are also well aware of the customer’s family and economic background.
(iv) Service motivation. The bank is fully service oriented and provides better services at a reasonable price to its customers.
(i) Closed club. It was observed that these Banks have left the secular character, whereas those banks should have followed the principle of providing the opportunity to people of every caste and class. Thus caste/religion/sect should not be the basis of providing membership or jobs in the Bank. (BCom SWOT Analysis Notes Study Material)
(ii) Faulty advances. The loan process is totally securities-based in these banks. They are mainly working for the socio-economic progress of the poor and deprived sections of our society, but it is observed that the bank usually advances loans to the table and well-off elite class mostly. This is the weakness of the Bank and the quantity of such faulty advances is continuously increasing.
(iii) Missing management culture. Banking is a complicated and sophisticated activity. They are by nature competitive and, therefore, it is necessary that management should be professional. But because of lack of proper training, the management class of bank is totally commercial. The bank does not have any scientific system for recruitment of its staff. The Bank needs trained commercial managers, who can work with full freedom. (BCom SWOT Analysis Notes Study Material)
(iv) Lack of planning. Unfortunately, only a very small number of these banks have their own plans while most of the banks have no specific planning for the future, neither long-term nor short-term. Thus, they are facing a crisis.
(i) Strict financial discipline. Urban Co-operative Banks can solve most of the problems by following a policy of strict financial discipline. The utilization of their resources/staff/assets/building should be more justified. The management should be aware of the proper utilization of its resources and adopt a productive approach. They are capable of making better utilization of their assets.
(ii) Application of modern management concepts and techniques. They have a good opportunity to adopt the latest management techniques and concepts to carry on their activities, but the banks are mostly following traditional and outdated techniques. Their work is still highly centralized and ignores the concept of decentralized functioning. For proper functioning and better productivity, there is a need to frame suitable strategies for development and planning, which will help in achieving these objectives.
(iii) Adopting bank marketing. The demand of the time is that these banks should jointly participate in professional marketing as this concept is suitable from the point of view of customers wherein banking services should be provided according to their needs and convenience. These banks can be more effective and trustworthy in the field of marketing and customer services.
(i) Resistance to change. Although the banks are aware of the future prospects and changes in the business environment/atmosphere, their inclination to maintain the status quo and their rigid behaviour comes in the way of change.
(ii) Regulatory frame. These banks rigidly follow the rules and regulations as compared to other banks, because they are under the control of the Reserve Bank of India as well as the State Government. This leads to confusion sometimes. Proper coordination between RBI and State Government is a complicated problem for the planned development of these banks. Under the Co-operative Societies Act, these banks are always under the pressure of State governments and the management has to face problems.
On the other hand, due to these pressures, it is a difficult job for the administration to maintain a healthy working atmosphere as per the rules and regulations of RBI. (BCom SWOT Analysis Notes Study Material)
(iii) Increasing overdue. The position of overdue is not very satisfactory. The state of too much overdue has to be stopped, otherwise, this tendency will present bottlenecks in the development of these banks. (BCom SWOT Analysis Notes Study Material)
(iv) Weak and non-viable units. The biggest problem of these banks is the increasing chain of weak and non-viable units. The mismanagement, faulty advances, and mounting overdue, and property taxes are the causes of the improper functioning of these units.
This analysis is an indicator only, yet the future is bright. These banks can make progress by removing the bottlenecks and by finding solutions to their problems. These banks have an important place in our economy. (BCom SWOT Analysis Notes Study Material)
BCom SWOT Analysis Notes Study Material