SWOT analysis

Question 1

Define SWOT ANALYSIS

Answer 1

SWOT analysis is a tool used to identify the internal strengths and weaknesses and the external opportunities and threats for a business.  
S - strengths
W - weaknesses
O - opportunities
T - threats

Question 2

What are examples of strengths and weaknesses of a business?

Answer 2

• Financial performance
• Resource management
• Human resource management
• Marketing
• Culture of the business
• Corporate social responsibility and ethics

Question 3

What are examples of opportunities or threats to a business?

Answer 3

• Political and legal environment
• Economic environment
• Social environment
• Technological changes
• Environmental/ethical changes
• Degree of competition

Question 4

What are the advantages of SWOT analysis?

Answer 4

• Logical structure that is simple to use
• Helps managers focus on strategic issues
• Helps managers to consider the impact of changes in the external environment.

Question 5

What are the disadvantages of SWOT analysis?

Answer 5

• May lack focus
• Danger that the analysis may be bias
• Can quickly become out of date so must be done on a regular basis