Longer questions

• What does SWOT stand for in SWOT analysis?

  Strengths, Weaknesses, Opportunities, Threats
• What is the purpose of SWOT analysis?

  To conduct strategic planning for a business
• What type of audit is performed to identify strengths and weaknesses?

  Internal audit
• What do you analyze to find opportunities and threats?

  External audit
• What financial statements are important for analyzing strengths and weaknesses?

  • Income statements
  • Balance sheets
  • Cash flow statements
• What does the income statement show?

  If the business made a profit
• What are the three types of profit analyzed in financial performance?

  Gross profit, operating profit, profit for the year
• What does the balance sheet show?

  The net worth of the business
• What does ratio analysis help assess?

  Profitability, liquidity, and efficiency
• Which ratio would you use to assess profitability?

  Return on Capital Employed
• What does the current ratio measure?

  The liquidity of the business
• What does gearing indicate in a business?

  The level of debt
• What efficiency ratios might be analyzed?

  Payable days, receivable days, inventory turnover
• Why is it important to consider rivals in ratio analysis?

  To compare performance and trends
• What other functional areas should be considered in SWOT analysis?

  • Marketing
  • Operations
  • Human Resources
• What operational metrics might be analyzed?

  Capacity utilization and average cost per unit
• What HR metrics could indicate strengths?

  Labor productivity and turnover rates
• What marketing metrics are relevant in SWOT analysis?

  Market share and market growth
• How can price elasticity of demand be a strength?

  If it is inelastic due to brand loyalty
• What is Kaplan Norton's balanced scorecard used for?

  To measure alternative performance metrics
• What does Elkington's TBL focus on?

  People, planet, and profit
• What external factors should be considered in SWOT analysis?

  • Political changes
  • Economic changes
  • Social changes
  • Technological changes
• What political changes could affect a business?

  New regulations and trade agreements
• How can economic changes impact a business?

  Through changes in GDP and taxes
• What fiscal policy changes could affect a business?

  Changes in taxes and interest rates
• How does globalization present opportunities or threats?

  By affecting market access and competition
• What social changes could impact a business?

  Urbanization and lifestyle changes
• How can technological changes affect businesses?

  By enabling online business growth
• What competitive environment factors should be analyzed?

  Rivalry, buyer power, and supplier power
• What model can be used to analyze competitive environment factors?

  Porter's Five Forces model
• What are the key components of a SWOT analysis?

  • Internal strengths
  • Internal weaknesses
  • External opportunities
  • External threats