SWOT

Question 1

what is the SWOT analysis for?

Answer 1

• Part of management process – strategic planning
• Used frequently in business to evaluate a company or a specific project

Question 2

SWOT stand for?

Answer 2

Internal: Strengths / Weaknesses
* External: Opportunities / Threats

Question 3

What can be external environment?

Answer 3

• Socio-cultural and demographic environment
• Economic environment
• Political and legal environment
• Technological environment
• Competitive environment
• Natural environment

Question 4

What are internal environment ?

Answer 4

• Human resources - quality of its employees, training processes, etc.
• Accounting and finance – financial resources, accessibility of data for
  analysis, etc.
• Operations – efficiency of its operational methods, supply chain
  management, technological applications, etc.
• Sales and Marketing – its 4 P’s, customer relationships, etc.
• Management and organizational structure

Question 5

What could be strenght?

Answer 5

What are the firm’s advantages? What does the firm do well, better than others?
What do other people see as the firm’s strengths? What makes it unique?
Consider this from the firm’s own point of view. Be realistic.
Examples: strong brands/marketing expertise, location of business, quality
manufacturing, patents, good reputation, cost advantages

Question 6

What could be weaknesses

Answer 6

What could the firm improve? What does the firm do badly? What should the firm
avoid? Again, consider this from internal perspective, though you can also
consider how external people perceive weaknesses that the firm does not see –
consider what the competitors are doing better than the firm. It is best to be
realistic now, and face any unpleasant truths as soon as possible.
Examples: lack of strong brand, low quality product, little marketing expertise,
lack of a differentiated product, high costs, poor distribution channel

Question 7

What could be opportunities?

Answer 7

Where are good external opportunities facing the firm? What are favorable trends
the firm is aware of?
Examples: Anticipated changes in technology, new/removal of government policy
or laws, markets, demographic patterns (population profiles, lifestyles, etc.),
additional or unfulfilled customer needs, removal of barriers, new technology
available, upcoming local/external events, no/little competition

Question 8

What could be threats?

Answer 8

What external obstacles does the firm face? What is the firm’s competition doing?
Are the required specifications for the products or services changing? Is
changing technology threatening the firm’s position? Does the firm have bad debt
or cash-flow problems?
Examples: Anticipated changes in technology, introduction/removal of
government policy or laws, markets, demographic patterns (population profiles,
lifestyles, etc.), no real customer needs, increased barriers, no technology
available, upcoming local/external events, increased competition