3.1.3 - SWOT Analysis

Question 1

What is a SWOT ANALYSIS?

Answer 1

LOOKING at the INTERNAL STRENGTHS and WEAKNESSES of a Business and the EXTERNAL OPPORTUNITIES and THREATS it FACE

Question 2

Explain STRENGTHS

Answer 2

POSITIVE INTERNAL FACTORS WITHIN a BUSINESS that CAN HELP it ACHEVE its OBJECTIVES
e.g :
- ‘State of Art’ Production Facilities
- Motivated and Loyal Workface

Question 3

Explain WEAKNESS

Answer 3

NEGATIVE INTERNAL FACTORS that Could PREVENT a BUSINESS From ACHIEVING OBJECTIVES
e.g.:
- a Poorly Motivated Workforce with High Staff Turnover, Poor Cash Flow and Growing Debt

Question 4

Explain OPPORTUNITIES

Answer 4

EXTERNAL BUSINESS CIRCUMSTANCES that CAN HELP It’s OBJECTIVES -> OPPORTUNITIES that are AVAILABLE
e.g:
- a New Market Opening following a political change
- a Fall in the Exchange Rate which will make exports

Question 5

Explain THREATS

Answer 5

EXTERNAL PROBLEMS that May PREVENT a BUSINESS FROM ACHIEVING It’s OBJECTIVES -> Threats that Face Business
e.g:
- a looming recession

Question 6

STRENGTH and WEAKNESS of SWOT ANALYSIS

Answer 6

+ POSSIBLE to IMPROVE the PERFORMANCE of business

• It DEPENDS on the ACTION that BUSINESS TAKES AFTER ANALYSIS