SWOT

Question 1

What does SWOT stand for?

Answer 1

Strengths
Weaknesses
Opportunities
Threats

Question 2

Strengths

Answer 2

These are internal factors that the organisation is good at or that give it an advantage over competitors.

Examples include:

• a well-known brand name
• strong cash flow
• experienced staff
• high customer satisfaction

Question 3

Weaknesses

Answer 3

These are internal factors that the organisation is not performing well in and that may hold it back.

Examples include:

• poor customer service
• outdated technology
• high staff turnover
• low profit margins

Question 4

Opportunities

Answer 4

These are external factors in the environment that the business could take advantage of.

Examples include:

• a gap in the market
• growth in customer demand
• new technology
• a competitor going out of business

Question 5

Threats

Answer 5

These are external factors that may negatively affect the business or prevent it from reaching its objectives.

Examples include:

• increased competition
• changing consumer habits
• economic downturns or rising interest rates
• new laws or regulations

Question 6

How does SWOT help decision making?

Answer 6

• Helps managers identify where the business is strong and where improvements are needed
• Encourages realistic planning by making both internal and external issues visible
• Supports strategic thinking - for example, building on strengths or reducing threats
• Can be used before launching a product, entering a new market, or changing business strategy
• Allows businesses to match their internal strengths with external opportunities to gain competitive advantage