3.1.3 Swot Analysis Flashcards
define swot analysis
analysis of the internal strengths and weaknesses of the business, & the opportunities and threats presented by its external environment
define trade association
an organisation whose members are all involved in the same industry or trade, the organisation pursues the interests of these businesses
define external audit
an audit of the external environment in which a business finds itself such as the market in which it operates
define internal audit
an audit of the business itself and how it operates
define strengths
internal factors within a business which can help the business achieve its objectives
define weaknesses
internal factors that could prevent a business from achieving its objectives
define opportunities
external business circumstances that can help it achieve its objectives
define threats
external problems that may prevent a business from achieving its objectives
how do businesses gather info to develop a strategy?
internal and external audits
explain what an internal audit collects
attempts to identify the strengths and weaknesses of its operations
covers areas like finance, production and human resources
explain what an external audit collects
addresses three key areas such as the market, competition and PESTLE issues relevant
looks at the size, growth of market, characteristics of customers, products, pricing, distribution and promotion
give examples of questions to figure out strengths?
what unique or low cost resources does the business have?
what is the USP
give examples of Qs to figure out weaknesses?
what could you improve?
what should you avoid?
give examples of qs to figure out opportunities?
what good opportunities can you spot?
what interesting trends are you aware of?
give examples of Qs to figure out threats?
what obstacles do you face?
what are your competitors doing?
