SWOT Analysis Flashcards
What is SWOT analysis?
Situational tool used to assess internal and external environment of a business.
Internal: Within the company
External: Outside environment, company has no control over what occurs
What does SWOT stand for?
S: Strengths (Internal / Positive impacts)
W: Weaknesses (Internal / Negative impacts)
O: Opportunities (External / Positive Impact)
T: Threats ( External / Negative impact)
What are strenghts?
Characteristics business may give as advantage over others.
positive internal factors
Build upon when possible
What are weaknesses?
Characteristics that give disadvantage to business
Negative internal factors
Weaknesses should be reversed where or when possible
What are opportunites?
Factors that business can use to gain competitive advantage
Positive external factors
Should be exploited when possible
What are threats?
Current or emerging factors that may affect company performance
External negative factors
Should be mitigated where possible
What are developing strategies?
4 strategies identified after preparing a SWOT:
- Offensive Strategy (Aggressive / immediate change) (Strengths / Opportunities)
- Defensive Strategy (Protect business against competition) (Strengths / Opportunities)
- Reorientation Strategy (Change direction to turn disadvantage to advantage) ( Weakness / Threats)
- Survival Strategy (Innovative development or change of product (Weakness / Threats)
What are advantages of SWOT analysis?
- Quick and Simple
- Range of applications ( Can be used for any factor in business)
- Determines market position and potnetial responses
- Reduces risks
What are disadvantages of SWOT analysis?
- Simplistic tool (May be ineffective)
- Static model (only true for certain period of time when made)
- Decision making may be unable to face weaknesses and threats
- Can’t be used as the only tool for analysis (Too short / simple)
