3.1.3 SWOT Analysis

Question 1

What is a SWOT analysis?

Answer 1

An analytical tool used by businesses to identify:
- Internal strengths and weaknesses
- External Opportunities & Strengths

Question 2

What happens when a SWOT analysis has been completed on a business?

Answer 2

• Appropriate decisions can be made to improve performance:
• Strengths should be harnessed
• Weaknesses should be eliminated
• Opportunities should be seized
• Threats should be mitigated

Question 3

What can an effective SWOT analysis do?

Answer 3

• Can help senior managers to understand current business position so appropriate strategic decisions can be made

Question 4

Give a strength of a SWOT analysis.

Answer 4

• If it is a big company thay can use their strengths to exploit opportunitys to then allow them to reach their aim