U1 AOS2/KK9: Planning tools (such as a SWOT analysis)

Question 1

Outline the purpose of a SWOT analysis.

Answer 1

SWOT analysis is a strategic business planning tool.

Question 2

Outline the term, “Opportunity.”

Answer 2

Opportunities refer to favorable external factors that could give an organization a competitive advantage

Question 3

Outline the term, “Threat.”

Answer 3

Threatsrefer to factors that have the potential to harm an organization

Question 4

Outline the term “Strength.”

Answer 4

Strengths describe what an organization excels at and whatseparates it from the competition.

Question 5

Outline the term, “Weakness.”

Answer 5

Weaknesses stop an organization from performing at its optimum level. They are areas where the business needs to improve to remain competitive

Question 6

True/False

A SWOT analysis is used for the external environment only.

Answer 6

False, used in the internal & external environment.

Question 7

True/False:
The “W” in a SWOT analysis is in reference to the weaknesses of the business in the external environment.

Answer 7

False, refers to a weakness in the business in the internal environment.

Question 8

Identify and explain which category of SWOT the closing down of a business’ supplier falls into.

Answer 8

Threat. External factor to the business. Hasn’t yet had an impact on the business but will if not dealt with immediately.

Question 9

Identify and explain which category of SWOT the following scenario falls into:

the problem that exists when a smaller leather supplier business, which relies on a large well know corporation, is no longer used as a supplier.

Answer 9

Threat. Threatsrefer to factors that have the potential to harm an organization, in this case the no renew of a contract is a threat to this business.

Question 10

Discus 6 benefits of a SWOT analysis.

Answer 10

• A SWOT analysis helps businesses to build on strengths (S), minimise weakness (W), seize opportunities (O),and counteract threats (T).
• Further, a SWOT analysis can
• It can help you review your entire business, or allow you to focus on 1or2 specific issues.
• It can help you create or update your business plan
• It can help you decide whether to introduce a new product or service to the market
  be part of your regular strategic planning review (quarterly, half-yearly or yearly).
• It can help the business to make meaningful changes.

Question 11

Outline the limitations of a SWOT analysis.

Answer 11

It will will not prioritise issues

• It will not provide solutions or offer alternative decisions
• It can produce a lot of information, but it may not all be useful
  you must review the data generated to determine what is relevant.
• It can generate too many ideas but will not help you choose which one is best