SWOT/STEEPLE test Flashcards
S.W.O.T
Strengths, Weaknesses, Opportunities and Threats
what is a SWOT analysis?
A method for assessing a business, its resources, and its environment
For what External Factors is Steeple used for?
Opportunities and Threats
Internal Factors
Strengths and Weaknesses: controlled by the Firm
External Factors
Opportunities and Threats: not controlled by the firm, ex. Politics and/or economics
What does the SWOT analysis provide?
information that is helpful in matching the firm’s resources and capabilities
Strengths
Company strengths: Help build up competitive advantage.
Weaknesses
Company Weaknesses: One should seek ways to reduce or eliminate weaknesses before they become too severe.
Opportunities
Opportunities in the Market:
Threats
Company threats
Strength Examples
Market Dominance; Low cost production; Leadership; Reputation; High productivity; good skills.
Weaknesses Examples
Weak Position; high cost structure; Quality Problems; Poor reputation; lack of skills.
Examples of opportunities
Technological Innovation; New Demand; Market Growth; Change in Culture; Economic Growth.
Examples of Threats
Decline in Economy; New Laws; Change in Culture; Other firms.
S.T.E.E.P.L.E
Social; Technology; Economic; Environment; Politics; Legal/Laws; Ethics
STEEPLE definition
Framework used to analyse the external environment and identify external factors that represent opportunities and threats.
Political
Political Intervention, such as interest rat policy, affects demand patterns.
Economic
Changes in the economy, which affects a firm, ex. Inflation, Unemployment.
Social
Social and Cultural Changes require market research to identify trends and pattern, ex. Growth in Population, Media pov, etc.
Technological
Affects different firms in different areas, ex. communication devices, machinery, software, goods, etc.
Legal
Laws and Restrictions that a company has to follow, company have to follow these requirements.
Environmental
Company has to deal with impacts in the environment.
Ethical
Social principles that govern or influence the behaviors and a pov of what is right and wrong for a firm.
