3.1.3

• What does SWOT stand for?

  Strengths, Weaknesses, Opportunities, Threats
• What type of factors are Strengths and Weaknesses in a SWOT analysis?

  Internal factors
• What type of factors are Opportunities and Threats in a SWOT analysis?

  External factors
• How are Strengths and Opportunities characterized in a SWOT analysis?

  They are characterized as positive
• How are Weaknesses and Threats characterized in a SWOT analysis?

  They are characterized as negative
• What are the benefits of SWOT analysis?

  • Provides better understanding of internal strengths and weaknesses
  • Identifies external opportunities and threats
  • Serves as the first stage in strategic planning
  • Helps businesses build on strengths, reduce weaknesses, take advantage of opportunities, and minimize threats
• What are the drawbacks of SWOT analysis?

  • Time-consuming and quickly outdated
  • Quality depends on the people compiling it
  • Only considers past and current situations
  • Future strategy relies on the business's future objectives