SWOT Analysis Flashcards
What is a SWOT analysis used for?
To identify and analyze the internal strengths and weaknesses of an organization, as well as the external opportunities and threats created by the business and economic environment.
When is a SWOT analysis typically used?
When developing corporate objectives or smaller functional strategies such as a marketing strategy.
What does a SWOT analysis consider?
Internal strengths and weaknesses, and external opportunities and threats.
What is the objective of using a SWOT analysis?
To develop a strategic plan that maximizes strengths and opportunities while minimizing weaknesses and threats.
List some benefits of carrying out a SWOT analysis.
- Assesses current market position in terms of strengths and weaknesses
- Enables building on strengths and protecting against weaknesses
- Shows market opportunities to exploit
- Reduces impact of threats.
What is a potential drawback of conducting a SWOT analysis?
Important strengths, weaknesses, opportunities, or threats may be overlooked, leading the firm in the wrong direction.
What is a strength in the context of a SWOT analysis?
A strength is when a business is good at something and takes advantage of this strength.
Define a weakness in a SWOT analysis.
A weakness occurs when a business performs poorly in an important area or fails to take advantage of an existing strength.
What is an opportunity in a SWOT analysis?
An external condition that could positively impact the business’s performance and improve competitive advantage if acted upon timely.
What constitutes a threat in a SWOT analysis?
An external condition that could negatively impact the business’s performance and reduce competitive advantage.
What can be done once the SWOT analysis is completed?
Develop a strategy that uses strengths and opportunities to reduce weaknesses and threats.
What are the four key actions an effective SWOT allows a business to take?
- Build on strengths
- Resolve weaknesses
- Exploit opportunities
- Avoid threats.
