SWOT Flashcards
What does SWOT stand for?
Strengths, Weakness, Opportunities, and Threats
What is the purpose of SWOT?
to conduct a general and quick examination of a businesses current position so that it can identify preferred and likely directions in future
what environment does SWOT analysis deal with?
both (internal and external)
what makes something a strength?
if the business and/or its staff are known for it, makes money, generate business/reputation, lead to customer confidence, and causes other business to learn from them (internal)
what makes something a weakness?
things that the business and/or its staff do badly, that it is ineffective at or has a poor reputation for (internal)
what makes something an opportunity?
directions that a business could profitably take in future because of its strengths (external)
what makes something a threat?
the activities of competitors, failing to take opportunities, not building on success, failing profits
what are some advantages of SWOT analysis?
it allows for an understanding of the strengths/weakness of a business, encourages strategic thinking, and is flexible
what are some disadvantages of SWOT analysis?
needs to be completed on a regular basis, difficult to anticipate future factors, and can be time consuming
when would a business use SWOT?
often used as part of a strategic or planning process, but can be applied to help understand a business and also for decision-making for many different scenarios
