Situational Analysis Flashcards
What is a SWOT analysis?
SWOT analysis is a strategic tool used to evaluate an organization’s Strengths, Weaknesses, Opportunities, and Threats. It helps assess internal advantages and limitations, as well as external prospects and challenges, guiding organizations in strategic planning and decision-making. Strengths and weaknesses are internal, opportunities and threats are external.
What is a situational analysis?
A situational analysis is an assessment of the internal and external factors affecting an organization or project. It identifies strengths, weaknesses, opportunities, and threats (SWOT) to inform strategic decision-making.
What are the disadvantages of SWOT?
- Oversimplifies situations by forcing factors into four categories.
- Can be subjective, as some strengths may be less significant.
- Factors may be ambiguous; some can be both opportunities and threats depending on business handling.
What is a PESTLE analysis?
Political: Government & taxation policies, environmental regulations, trade restrictions, stability
Economic: Growth, interest rates, currency exchange rates, inflation rates, economic trends and conditions.
Social: Health, population growth, age distribution societal trends and cultural aspects.
Technological: Rate of technology change, research and development, automation, legal, impact of technology and innovation.
Legal: Consumer, employment, industry legislation, laws and regulations affecting the industry.
Environmental: Use of natural resources, recycling, waste disposal, environmental issues and sustainability concerns.
