3.1.3 SWOT analysis

Question 1

What is SWOT analysis

Answer 1

A four factor model which deals with strengths, weaknesses, opportunities and threats facing a business

Question 2

What are Internal factors

Answer 2

People, marketing, finance and operations

Question 3

What are external factors

Answer 3

Beyond the control of the business
PESTLE factors

Question 4

How does SWOT analysis help businesses plan strategies

Answer 4

Helps managers make strategic and tactical decisions
Considers a businesses individual circumstances
Done in an objective and factual way
Gives a business gain a competitive advantage
Can adapt to changing conditions

Question 5

PESTLE analysis

Answer 5

Political
Economic
Social
Technological
Legal
Environmental

Question 6

Political (PESTLE)

Answer 6

Governmental policy on taxation and industry regulations can affect business.

Question 7

Economic (PESTLE)

Answer 7

Can include consumer spending, interest rates, exchange rates and economic growth

Question 8

Social (PESTLE)

Answer 8

Changing social trends can result in a change in demand

Question 9

Technological (PESTLE)

Answer 9

Can influence decision making

Question 10

Legal (PESTLE)

Answer 10

Changes in law can affect business

Question 11

Environmental (PESTLE)

Answer 11

Customers are becoming more concerned with protecting the environment
Businesses need to reduce their environmental impact