3.1.3 - SWOT Analysis

Question 1

What Is strengths in SWOT

Answer 1

• Strengths; Internal factors within a business that can help it achieve its objectives

• Advantages of the business
• What unique or low-cost resources
does the business have?
• What do people in your market see as your strengths?
• What factors mean that you “get the sale”?

Question 2

What Is Weaknesss in SWOT

Answer 2

Weaknesses; Internal factors that could prevent a business from achieving its objectives

• What could you improve?
• What should you avoid?
• What are people in your market likely to see as weaknesses?
• What factors lose you sales?

Question 3

What are opportunities in SWOT

Answer 3

• Opportunities; External business circumstances that can help it achieve its objectives

What good opportunities can you spot?
• What interesting trends are you aware of?
• Useful opportunities can come from such things as:

• Changes in technology and markets
• Changes in social patterns, population, lifestyle changes etc.

Question 4

What are Threats in SWOT

Answer 4

• Threats; External problems that may prevent a business from achieving its objectives

• What obstacles do you face?
• What are your competitors doing?
• Are quality standards or specifications for your job, products or services changing?
• Is changing technology threatening your position?
• Do you have bad debt or cash-flow problems?
• Could any of your weaknesses seriously threaten your business?

Question 5

How can SWOT be used

Answer 5

A. SWOT can be used as a tool to formulate a strategy of growth and attack to use the business’s strengths to maximise opportunities in the market
B. SWOT can be used as a tool to compete and defend, using the strengths to minimise the market threats
C. SWOT can be used as a tool to improve and attack new markets or produce new products
D. SWOT can be used as a tool to identify when to change and retreat