Theory on SWOTFor Lesson 6

SWOT Analysis

A SWOT analysis is used to look at a Business current position.

It looks at both internal factors (from in the business) and external factors (outside the business).

It’s a planning tool to help with future decisions.

SWOT (acronym for)

Strengths Weaknesses

Opportunities Threats

Strengths (Internal Factor)

• What has the business been good at in the past

Strengths

Weaknesses (Internal Factor)

• What has the business been bad at

Weaknesses

Strengths (Internal Factor)

• What has the business could do well at. Factors outside the business that could help

Opportunities

Strengths (Internal Factor)

• Problems the business may face or could harm the business

Threats

Strengths:A basic list of possible strengths that the company does well e.g. Brand name Location People Customer Service Competition Advertising

Weaknesses:A basic list of possible weaknesses that may prevent the company from achieving goals e.g. Standards People Customer Service Location Culture Training

Opportunities:What overall opportunities can the company improve upon e.g. Training Customer Service Specific Markets Local Marketing Database Website

Threats:Threat represent things which are external and beyond the control of the company: Direct competition Indirect competition Technology Economic climate

SWOT = areas to be looked at

Video on SWOT

http://www.youtube.com/watch?v=AXVhTBTsZVY

Example SWOT analysis for Disney

http://www.strategicmanagementinsight.com/swot-analyses/walt-disney-swot-analysis.html