O and T:

1
O and T

• UNDERSTANDING THE EXTERNAL ENVIRONMENT FOR SMEs

Michael W. Piczak April 2003
2
CHARACTERISTICS OF O T

• TYPICALLY REFERRED TO AS TRENDS, SHIFTS
• BEYOND CONTROL OF INDUSTRY PLAYERS
• ARE EVER CHANGING
• HAVE SPEED/DIRECTION
• CAN BE O or T SIMULTANEOUSLY
• NO RESPONSE REQUIRED JUST AWARENESS
• AFFECTS INDUSTRY PLAYERS DIFFERENTIALLY

3
THREE LEVELS AND A PLAN

• INDUSTRY LEVEL (O T)
• BUSINESS LEVEL (S W)
• PERSONAL LEVEL (S W)
• PLUS A PLAN TO SHORE UP WEAKNESSES

4
A BASIC FRAMEWORK
5
JEOPARDY SWOT GAME S, W, O, or T for 100 ALEX?

• MP3 PLAYERS INCREASE IN POPULARITY
• BUSINESS HAS FEW PARKING SPOTS
• LOCAL GOVERNMENT REVIEWS AGRICULTURAL ZONING OF
  PRIVATE GOLF COURSES
• MUNICIPAL GOVERNMENTS CONSIDER ALTERNATE SERVICE
  DELIVERY FOR GARBAGE COLLECTION

• I AM A HARD WORKER
• INTERNET BUYING ON INCREASE
• I AM NOT GOOD AT ACCOUNTING
• BUSINESS IS LOCATED ON A BUS ROUTE
• ENRON SHOWN TO ENGAGE IN UNETHICAL CONDUCT
• TELEVANGELIST CAUGHT WITH PANTS DOWN

6
FINAL SWOT JEOPARDY

• CANADIAN DOLLARS SLIDES
• NAFTA RULING CLEARS WAY FOR CANADIAN SHAKES INTO
  US
• U.S. INVADES IRAQ
• CANADIANS ADOPT HEALTHIER LIFESTYLES
• I DONT LIKE CUSTOMERS
• I DONT KNOW A LOT OF PEOPLE
• CANADIANS CONTINUE TO BE THE MOST INSURED PEOPLE
  IN THE WORLD
• IM SHY
• I HAVE WORKED IN A RETAIL OPERATION

• I CARRY NAME BRANDS
• LOCATED ON A BUSY STREET IN A BIA
• I TOOK SMALL BUSINESS MANAGEMENT AT MOHAWK
• MY SURVEY SHOWS PEOPLE LIKE OUR SUPERIOR SERVICE
• PEOPLE REPORT LIKING MY IMAGE
• MY CASHFLOW IS NEGATIVE IN THE OFF SEASON
• INDUSTRY EXPERTS NOTE PREFERENCE FOR 1 FLOOR
  BUNGALOWS WITH HARDWOOD FLOORS, SKYLIGHTS, MANY
  UPGRADES

7

• PEOPLE READING LESS
• SURVEY SHOWS FAMILIES HAVE LESS TIME
• PEOPLE FEARFUL OF FLYING IN WAKE OF 9/11
• INSURANCE FOR SMEs RATES SKYROCKETING
• CITY SHIFTS TAX BURDEN FOR BUSINESSES IN CORE
• U.S. CUSTOMS TIGHTENS BORDER CROSSING PROCEDURES

• I HAVE THE SUPPORT OF MY FAMILY FOR THIS VENTURE
• BRIGHT AMBIANCE
• UNPARALLELED CUSTOMER SERVICE
• ROGERS ENTERTAINMENT ANNOUNCES VIDEO ON DEMAND
• KRISPY KREME CROSSES BORDER INTO CANADA
• IM YOUNG AND ENERGETIC

8
DOWNLOADING INCREASING IN POPULARITY
9
OPPORTUNITY OR THREAT?
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SWOT The purpose of this section is
OPPORTUNITIES smoking by-laws relaxed food spending up THREATS threat 1 threat 2
BUSINESS STRENGTHS strength 1 BUSINESS WEAKNESSES weakness 1
PERSONAL STRENGTHS PS 1 PERSONAL WEAKNESSES PW 1
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OPPORTUNITES

• SMOKING BY-LAWS RELAXED
• The relaxation of no-smoking bylaws by the City
  of Richmond was welcome news to food service
  operators ending years of frustration and
  uncertainty. The by-law posed serious challenges
  to operators who faced considerable expense in
  upgrading HVAC systems. CFRA Surveys show
  consumers, especially in bars, enjoy having their
  cigarettes with drinks and meals. (Richmond
  Reporter, August 31, 2003).
• FOOD SPENDING UP
• The ORA reports spending on meals taken outside
  the home continues to increase on a year to year
  basis.
• (ORA Food News, August, 2002)

12
STRUCTURE OF WRITEUP

• SWOT IS INTRODUCED AND EXPLAINED
• 3 LEVELS OF ANALYSIS
• EACH 4-5 WORD POINT IN TABLE GETS OWN SUBHEADING
• EACH SUBHEADING HAS EXPLANATION AS REQUIRED
• O AND T RECEIVE CREDIBLE CITATIONS OR REFERENCES
• ENSURE Os gt Ts
• O T MAY GET PROBABILITY OF OCCURRENCE IMPACT
  ASSESSMENT
• NEED A PLAN TO SHORE UP WEAKNESSES

13
O and T

• UNDERSTANDING THE EXTERNAL ENVIRONMENT FOR SMEs

The end
Michael W. Piczak April 2003