Business Environments l SWOT Analysis

Question 1

What are strengths or weaknesses?

Answer 1

Assets
Skills
Resources

Question 2

Opportunities

Answer 2

Factors or situations that could add value to the business.

Question 3

Threats

Answer 3

Factors or situations that could destroy some of the value of the business.

Question 4

Competitive price (example of a strength)

Answer 4

If the business sells the product or service at a better price than competitors, it is differentiating itself within the market.

Question 5

Location (example of a strength)

Answer 5

The location should also be easily accessible.

Question 6

Examples of Strengths

Answer 6

• Product differentiation
• A skilled workforce
• Business culture
• Good marketing and a strong brand
• Access to financing and other resources
• Operational efficiency and good quality are synonymous

Question 7

EXAMPLES FOR LOCATION OF A CLOTHING RETAILER

Answer 7

Is Your Store a Good Fit for the Neighborhood?

Complementary Businesses Are Your BFFs!

Parking, Parking, Parking!

Keep It Safe!

Look Ahead: What’s Coming to the Area?

Mall Trading Hours: Are They on Your Side?

Competition: Embrace It!

Question 8

Weaknesses

Answer 8

A weakness has the exact opposite effect on the success of the business to strengths. If not addressed the effect/s may prove to be debilitating for the business.

A business will need to put the necessary strategies in place to overcome any weakness.

Question 9

Opportunities

Answer 9

External factors which present the business with the chance to outperform competitors, especially if the competitor is weak in a particular area.

Question 10

Threats

Answer 10

Threats are those external factors that could hamper the success or growth of the business and therefore the business has to put contingency plans in place to deal with these factors.