Chapter 7 - SWOT analysis and strategic issues

Question 1

What does SWOT stand for?

Answer 1

(Relative) Strengths
(Relative) Weaknesses
Opportunities
Threats

Question 2

How is SWOT linked with the external and internal environment analysis?

Answer 2

Relative Strengths and Weaknesses → internal analysis
Opportunities and Threats → external analysis

Question 3

What is a strategic issue?

Answer 3

By doing a SWOT Analysis you encounter your strengths and weaknesses with opportunities and threats

⇒ Strengths are factors that enable a company to exploit opportunities or cope with threats
⇒ Weaknesses are limitations or deficiencies that prevent a company from exploiting opportunities or coping with threats

This results in strategic issues - these strategic issues should be kept in mind before starting with the planning process, before setting goals and objectives and before formulating a strategy.

Question 4

What do you have to pay attention to when you do a SWOT Analysis? What are the most done mistakes?

Answer 4

• SWOT is incomplete → ask not only people within the company because certain perspectives will not be taken into account then
• Do not stay on the surface but dig deeper → have at least a certain amount in every “chapter” to make sure you don’t oversee aspects
• Do not confuse weaknesses with threats → be specific about what you mean and then clearly assign whether it is a weakness or a threat
• Do not write your arguments / statements too general → bring in specific definitions and describe exactly what you mean
• Do not make a SWOT Analysis without a conclusion in the end