3.1.3 SWOT Analysis

• What is SWOT Analysis used for?

  Strategic planning
• The four components of SWOT Analysis are Strengths, Weaknesses, Opportunities, and Threats
• Strengths and Weaknesses are internal factors, while Opportunities and Threats are external factors in SWOT Analysis.
• What do strengths represent in SWOT Analysis?

  Competitive advantage
• An example of a strength in SWOT Analysis is a strong brand reputation
• Match the category of strength with its example:

  Brand Reputation ↔️ Trusted brand name

  Unique Products ↔️ Patented technology

  Efficient Processes ↔️ Reduced production costs
• Strengths focus on positive internal attributes, while weaknesses highlight negative internal factors in SWOT Analysis.
• What are weaknesses in SWOT Analysis?

  Internal limitations
• An example of an operational weakness is inefficient processes
• Addressing weaknesses in SWOT Analysis involves identifying root causes and implementing improvement strategies.
• What do opportunities represent in SWOT Analysis?

  External growth factors
• Emerging markets are an example of an external opportunity
• Leveraging strengths to seize opportunities is crucial for maximizing growth and success in SWOT Analysis.
• What is the purpose of SWOT Analysis as a strategic planning tool?

  Evaluate Strengths, Weaknesses, Opportunities, and Threats
• Strengths and Weaknesses are internal factors, while Opportunities and Threats are external factors in SWOT Analysis.
• What is SWOT Analysis used for?

  Strategic planning
• SWOT Analysis evaluates a business's Strengths, Weaknesses, Opportunities, and Threats
• What is an example of a strength in SWOT Analysis?

  Strong brand reputation
• Strengths and weaknesses in SWOT Analysis are internal factors.
• Strengths and weaknesses are internal factors, while opportunities and threats are external factors.
• What is the purpose of identifying strengths in SWOT Analysis?

  Gain competitive advantage
• Businesses should leverage their strengths to capitalize on opportunities and mitigate threats.
• What is the impact of weaknesses on a business's performance?

  Hinders business performance
• Businesses should address weaknesses to improve competitiveness.
• Weaknesses in SWOT Analysis are internal factors that hinder a business's performance, affecting productivity, profitability, and competitiveness.
• What is an example of an operational weakness in SWOT Analysis?

  Outdated equipment
• What should businesses focus on when addressing weaknesses in SWOT Analysis?

  Improving performance
• A company with high employee turnover has a weakness in Human Resources.
• Weaknesses in SWOT Analysis are internal factors that hinder a business's performance.
• What is an example of an operational weakness in SWOT Analysis?

  Outdated equipment
• High employee turnover is an example of a weakness in Human Resources.
• Opportunities in SWOT Analysis are external factors that can lead to growth and success for a business.
• What is an example of a technological advancement that can create an opportunity for a business?

  Innovations in efficiency
• Leveraging strengths to seize opportunities can maximize growth and success.
• Threats in SWOT Analysis are external factors that can negatively impact a business's performance.
• Match the threat type with its example:

  Competitive Pressure ↔️ Increased competition from new entrants

  Economic Downturn ↔️ Recession leading to decreased consumer spending

  Changing Regulations ↔️ New policies affecting production costs

  Emerging Technologies ↔️ Disruptive technologies rendering products obsolete
• What is an example of a social and cultural shift that can threaten a business?

  Changing consumer preferences
• Steps in conducting a SWOT Analysis

  1️⃣ Identify Strengths

  2️⃣ Identify Weaknesses

  3️⃣ Identify Opportunities

  4️⃣ Identify Threats
• What does a SWOT Analysis evaluate?

  Strengths, Weaknesses, Opportunities, Threats
• Strengths are internal attributes that give a competitive advantage to a business.