3.1.3 SWOT analysis

Question 1

what is SWOT analysis

Answer 1

an analytical tool used to help a business identify their strengths and weaknesses (internal factors) and opportunities and threats (external factors) that a business may face

Question 2

what are strengths, weaknesses, opportunities and threats

Answer 2

strengths- what is the business good at
weaknesses- what the business does poorly
opportunities- options a business may explore to enjoy further success
threats- hazards that have the potential to damage business performance

Question 3

what are the benefits of using SWOT analysis

Answer 3

+ allows a business to make a strategic decision and to understand the current business position
+ can easily be done to adapt to changing conditions

Question 4

what are the drawbacks of SWOT analysis

Answer 4

• time-consuming, it must be updated regularly to be relevant
• doesn’t guarantee success, it allows businesses to plan but a business may find problem when implementing the strategy