SWOT analysis 3.1.3 Flashcards
1
Q
What is SWOT analysis?
A
It is an analytical tool used by a business to identify internal competitive strengths & the nature of its external environment.
2
Q
Strengths
A
What a business is good at and should be harnessed.
3
Q
Weaknesses
A
What the business does poorly and should eliminate.
4
Q
Evidence of Strengths and Weaknesses
A
- market share
- profitability
- efficiency
- brand loyalty
- market capitalisation
- reputation for quality
5
Q
Opportunities
A
Options a business may exploit to enjoy future success and should be seized
6
Q
Threats
A
Hazards that have the potential to damage business performance and should be mitigated.
7
Q
Benefits of SWOT analysis
A
- logical structure
- focuses on strategic issues
- encourages analysis of the external environment
8
Q
Drawbacks of SWOT analysis
A
- too often lacks focus
- can quickly become out-of-date
