Lesson 13 - SWOT Analysis

Question 1

Define ‘SWOT Analysis’

Answer 1

A SWOT analysis is a study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats.

Question 2

What does a SWOT analysis help a business to do?

Answer 2

Set objectives and highlight areas that require special attention.

Question 3

What factors do STRENGTHS include?

Answer 3

Internal factors that are positive relative to competitors

Question 4

What factors do WEAKNESSES include?

Answer 4

Internal factors which are negative relative to competitors

Question 5

What factors do OPPORTUNITIES include?

Answer 5

Factors in the external environment that can be beneficial to the organisation

Question 6

What factors do THREATS include?

Answer 6

Factors in the external environment that can be detrimental to the organisation

Question 7

List two benefits of conducting a SWOT analysis.

Answer 7

A SWOT analyses the effectiveness of a company’s operation and the internal factors which influence its success.

Shows the current and potential future position of a company.

Highlights company’s strengths and weaknesses against competitors.

Used to help the company meet consumer needs and keep up with the competition.

Question 8

List two drawbacks of a SWOT analysis.

Answer 8

Weaknesses and strengths are often a matter of perception rather than fact (often though consumer research)

May be advisable to employ an outside company to carry out a regular audit of the business.

Open to interpretation (no two opinions are the same)

Information is never perfect, and the future always changes.