Swot analysis Flashcards
1
Q
what is swot analysis?
A
it investigates a companys current strength and weaknesses to help foresee future opportunities and threats
2
Q
why is swot analysis good for senior executives?
A
- provides sufficient into current and potential position of the business
- based on good evidence
3
Q
what are KPI’s and examples?
A
KPI’s are key performance indicators
example:
1. like for like sales = last years sales compared to this year excluding new stores
2. market share
3. capacity utilisation
4
Q
what does it mean by strengths of the business and give examples?
A
- internal factors within a business that can help achieve objectives
e.g. USP
resources
innovation
finances
5
Q
what does it mean by weaknesses of the business and give examples?
A
- internal factors that could prevent the business from achieving its objectives
e.g. poor marketing
lack of innovation
poor human resource (skills)
6
Q
what does it mean by opportunities for the business and give examples?
A
- external business circumstances that can help achieve its objectives
e.g. improving technology
legislation changes
changing trends
7
Q
what does it mean by threats for the business and give examples?
A
- external problems that could prevent the business from achieving its objectives
e.g. same as opportunities
8
Q
how can swot be used?
A
- tactical decisions:
- convert weaknesses into strengths
- e.g. hire new workers, get a loan etc - strategic decisions
- take advantage of opportunities/ respond to threats
- e.g. innovate and produce a product in response to trends
9
Q
advantages of swot analysis
A
- logical structure
- encourages analysis of external environment
- easy to complete
- provides something for a business to act upon
10
Q
disadvantages of swot analysis
A
- doesn’t provide solutions
- needs to be up to date for it to be relevant
- done by management = bias/unreliable
