3.1.3

Question 1

What does SWOT stand for?

Answer 1

Strengths, Weaknesses, Opportunities and Threats

Question 2

What might an internal audit involve?

Answer 2

§ Products and their costs
§ Finances
§ Production
§ HR

Question 3

What does an external audit involve?

Answer 3

The environment in which the business operates in and has little control over - these factors are often PESTLE

Question 4

What is PESTLE?

Answer 4

§ Political 
§ Economic
§ Social 
§ Tech 
§ Legal 
§ Environmental

Question 5

How does SWOT analysis help a business?

Answer 5

· A planning tool
· Assesses for potential risks and rewards
· Considers effectiveness/success in relation to the business environment
· Evaluate and adjust strategies
· Helps a company to operate in a competitive environment

Question 6

What are the strengths in SWOT analysis?

Answer 6

○ Loyal customers
○ The employees are effective and conduct their work to a high standard
○ Good production strategy

Question 7

What are the weaknesses in SWOT analysis?

Answer 7

○ Product/services which do not reflect the customer therefore are not selling well
○ Out of date marketing
○ The production process is not keeping up with demand

Question 8

What are the opportunities in SWOT analysis?

Answer 8

○ The competitors are not performing well

○ A country has now become open for international business after a political change

Question 9

What are the threats in SWOT analysis?

Answer 9

○ The competitors are headhunting your key employees

○ Social attitudes are changing to your product