Swot analysis 3.1.3

Question 1

What does SWOT analysis stand for?

Answer 1

Strengths, weaknesses, opportunities and threats.

Question 2

What is SWOT analysis?

Answer 2

The analysis of internal strengths and weaknesses of businesses and external opportunities and threats.

Question 3

What are examples of SWOT?

Answer 3

• Product with USP.
• Loyal customer base.
• Poorly motivated workforce.
• Poor cash flow.
• The collapse of a rival.
• Low interest rates.
• Recession.
• New entrance to the market.

Question 4

What are the uses of a SWOT analysis?

Answer 4

• Helpful when developing corporate strategies, e.g making a decision about which product to launch.
• A business can improve on its weaknesses so it can grow.

Question 5

What can strengths & weaknesses relate to?

Answer 5

• Financial performance
• Resource management
• HR resource management
• Marketing
• Culture of business
• Corporate social responsibility & ethics

Question 6

What can opportunities & threats relate to ?

Answer 6

External influences such as:

• Economic environment
• Political & Legal
• Degree of competition
• Technology & change
• Legislation
• Trends
• Demographics

PESTLE

Question 7

What are the advantages of SWOT?

Answer 7

• Encourages logical analysis.
• Able to identify & address weaknesses.
• Doesn’t require training or experts.
• Promotes discussion.
• Allows strengths to be identified.

Question 8

What are the disadvantages of SWOT?

Answer 8

• Cannot be sole analysis, needs to be used in conjunction.
• Only a few elements were considered.
• Only lacks hierarchy, doesn’t prioritise decisions.
• Is a time-consuming task
• SWOT analysis can become out of date if in a dynamic market.
• Subject to bias