3.1.3 swot analysis

Question 1

define swot analysis

Answer 1

A diagnostic tool used to identify the internal strengths and weaknesses and the external opportunities and threats to a business

Question 2

swot helps inform decisions , the value includes

Answer 2

Structured approach to analysing a business
Considers both internal and external issues
Includes both qualitative and quantitative factors

Question 3

swot can look to ….

Answer 3

maximise strengths
minimise weaknesses
take advantage of opportunities
avoid threats

Question 4

strengths and weaknesses are internal to the business and can relate to any functional areas including

Answer 4

Financial performance e.g. profitability, liquidity, gearing
Resource management e.g. quality, stock control, relationship with suppliers, lean production
Human resource management e.g. employer/employee relationships, workforce performance
Marketing e.g. product portfolio, brand recognition
Culture of the business
Corporate social responsibility and ethics

Question 5

opportunities and threats are external to the business and can relate to any external influences including

Answer 5

Economic environment e.g. stable, declining, growth
Political and legal environment
Degree of competition
Technological change
Legislation
Consumer trends
Demographics

Question 6

strengths and weaknesses , are the external or internal

Answer 6

internal

Question 7

opportunities and weaknesses, are they external or internal

Answer 7

external