Topic 2F: SWOT Analysis Flashcards
What is SWOT analysis?
This is a method of environmental analysis which looks at at an organisations internal strengths and weaknesses, as well as external opportunities and threats
What are strengths?
The areas of the organisation which should be exploited by suitable strategies.
What are weaknesses?
These areas of the organisation looked at to convert into strengths - businesses can either avoid strategies that may be affected by their weaknesses or find ways to overcome them
What is done with opportuities?
These are what can be exploited by the strengths of an organisation (matching strengths to opportunities)
What is done with threats?
These are thought about in ways to lead to greater opportunities
What are the two ways in which SWOT analysis can be used?
a.) The development of resource based strategies which enable the organisation to extend the use of its strengths - for example a supermarket chain extends its range of own branded goods from food to other areas
b.) The business can develop positioning based strategies. In other words, identifying what opportunities are available to them and what the firm has to d oto exploit them.
