SWOT

Question 1

What does SWOT stand for?

Answer 1

• Strengths
• Weaknesses
• Opportunities
• Threats

Question 2

What are the four distinct stages to preparing and uses a SWOT analysis?

Answer 2

• INTERNAL ANALYSIS; examining the capabilities of the business. This can be done by analysing the businesses strengths and weaknesses.
• EXTERNAL ANALYSIS; gathering data on markets, competitors activities, economic outlook and the environmental impact of the business. identifying those points that pose opportunities for the business and those that pose threats or obstacles to performance.
  PREPARE SWOT TABLE; entering the information collected in steps one and two into a SWOT table.
  USING the SWOT to develop a business strategic plan or functional strategy.

Question 3

Why use a SWOT?

Answer 3

• the objective of using a SWOT is the development of a strategic plan that considers many different internal and external factors and maximises the potential of the strengths and opportunities whilst minimising the impact of the weaknesses and threats.
• The idea of a SWOT is then to gain an overall picture of all potential influences on future business success and to adapt business strategy to reflect these influences.
• It is better than its competitors and in what areas it lags behind.

Question 4

What does O stand for in SWOT, and what does it mean?

Answer 4

• Opportunities
• An opportunity is an external condition that could have positively impact on the businesses performance and improve competitive advantage provided positive action is taken in time.

Question 5

What does the T in SWOT stand for and what does it mean?

Answer 5

• Threats
• A threat is a condition that could have a negative impact on the businesses performance and reduces competitive advantage.

Question 6

What does a SWOT allow a business do?

Answer 6

• build on strengths
• resolve weaknesses
• exploit opportunities
• avoid threats