3.1.3. Swot Analysis Flashcards
Purpose of Swot analysis
It is a structure/framework for analysing business’s current position and process of strategic planning
Internal considerations
Identifying strengths and weaknesses in business’s performance. Focus analysis on a few key performance indicators(KPIs):
-Like for like sales
-Market share
-Capacity utilisation
-Unit costs
-Brand-recognition
-Staff turnover
External considerations
Opportunities and threats
-Demography
-Beware laws and regulations
-Tech factors
-Competition
-Commodity prices
Ie. Rise in oil prices is a thread for airlines but an opportunity for suppliers of alternative energy
-Economic factors
Many businesses uses lobbying(process of directly trying to influence key political decision makers to act in best interest of business) of MPs to ensure government policies provide opportunities or at least offer only minimal threats.
