BMT 1 - SWOT Analysis Flashcards
1
Q
SWOT Analysis
A
S = Strengths
W = Weaknesses
O = Opportunities
T = Threats
- Shows both internal factors (strengths and weaknesses)
- And external factors (opportunities and threats)
2
Q
Strengths
A
- Current Internal things
- Which are good about the business
- They already exist
- They are about us
3
Q
Opportunities
A
Possible future changes in external environment
That creates possibilities for future development
Examples:
- Higher economic growth
- Consumer trends change in our favor
- New Government subsidies
4
Q
Weaknesses
A
Current Internal things
Which are bad for the business
They already exist
They are about us
Examples:
- Poor recent press
- High labor turnover
5
Q
Threats
A
Possible future changes in external environment
That may hinder future development
Examples:
- Recession
- New firms enter the market
6
Q
Pros
A
- Quick and easy
- A good starting point to formulate strategies
- Can see the organization’s position in the market
7
Q
Cons
A
Simplistic
Just a starting point
Require objectivity with weaknesses
Often incorrectly used
- E.g. One strength is that the market is growing quickly
- E.g. One weakness is that the market is saturated
