SWOT ANALYSIS Flashcards
What is SWOT analysis
Swot analysis is important when it comes to strategic decision making - Could be very important in: Internal and external analysis, Strategy, setting functional objectives etc.
SWOT Analysis:
A tool used for strategic planning that involves analysing a business’s internal resources and its external environment.
What is strategic decision making
Set mission statment
Internal and external analysis
Set corporate objectives
Create strategy
Set functional objectives
Implement plans
Review success
What does SWOT stand for
SWOT Stands for: Strengths, Weaknesses, Opportunities & Threats
What is the internal audit
Strengths
Weaknesses
Can interlink with PESTLE
What is the external audit
Opportunities
Threats
The external factors are harder to manage than the internal factors - For example, you can’t go into a saturated market wish for people to leave the industry, the threat is that the market is saturated and you can’t change that.
How can you conduct an internal audit
Core competencies
Human resources audit
Financial audit/ finances available
Assets available
Brand image
Example strengths
Huge sales trunover
Locistics
High street/ out of town locations
Examples of weaknesses
Low profit margins
Damage to brand image
Examples of opportunities
Further growth into non-food catagories
International expansion
Examples of threats
Brexit. economic uncertanty
M&S and Waitrose eating into premium end of the market
What are the advantages of SWOT
Encourages systamatic approach to decision making
Focuses on both internal and external factors
Strenghts and opportunities can be matched
Weaknesses and threats are identified and action can be taken to address
Can be used to identify core competencies and create a USP
