SWOT Analysis

    0
    20

     

    SWOT Analysis

     

    Internal Audit: Analysis of the business itself and how it operates, identifying strengths and weakness of operations and will include:

    • Products and their costs, quality and development
    • Finance including profit, assets and cash-flow
    • Divisional and departmental structure
    • Human Resources- Skills and training

     

    External Audit: Analysis of the environment in which the business operates and over which it has little or no control and will likely focus on areas such as; the market; competition and the political, social technological, legal and environmental issues relevant to the business

     

    SWOT:

    Businesses use SWOT analysis to assist them in choosing business strategies

    • Strengths
    • Weaknesses
    • Opportunities
    • Threats
      • Strengths and Weaknesses are internal to a business
      • Opportunities and Threats are external factors
      • Strengths are things a business is good at / areas of expertise
      • Weaknesses are things a business is poor at
      • Opportunities are areas that a firm could develop
      • Threats are factors that could damage the firm
      • By conducting a SWOT analysis, you can understand the firms position and the market position
      • By doing this you are helping the planning process
      • It allows a business to think about future strategies
      • To be effective businesses need to be honest when identifying both their strengths and weaknesses

    Can be a useful tool for developing corporate strategy but it may have other uses such as:

    • Which new product to launch
    • New marketing strategy
    • Whether or not to outsource a certain activity
    • Prepare for a new business venture
    • Help prepare for business restructure

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here