Lecture Notes Review: SWOT Analysis

Flashcards covering the overview, components, and challenges of SWOT analysis based on the lecture notes from September 16th.

What does SWOT analysis stand for?

Strengths, Weaknesses, Opportunities, and Threats analysis.

What are some examples of internal strengths a business might identify in a SWOT analysis?

Brand recognition, low unit costs, high market share, good internal relationships, strong cash flow, efficiency, high sales revenue, or low labor turnover.

What are some examples of internal weaknesses a business might identify in a SWOT analysis?

Weak cash flow, high levels of debt, or consistently high operating costs.

What are some examples of external opportunities a business might identify in a SWOT analysis?

A growing industry, technological advancements, or discovering a gap in the market.

What are some examples of external threats a business might identify in a SWOT analysis?

New legislation, competitor actions, high interest rates, a stagnant economy, disruptive technology (e.g., JLR, M&S), expensive suppliers, or changes in the economic environment.

How can managers use SWOT analysis to improve business performance?

By benchmarking internally and with competitors, identifying existing strengths, and developing strategies to leverage opportunities and mitigate weaknesses and threats.

According to the notes, why might senior managers struggle to gain a holistic view of a company's strengths and weaknesses?

It may be hard if they aren't asking the right questions to functional managers and employees, or if there's constant change preventing a ground-level view.

Why might not all identified strengths be relevant to a business, even if they exist?

Not all strengths matter if they don't align well with the business' mission statement or if they don't influence business decisions.

What contrasting approaches do some companies take when focusing on different aspects of a SWOT analysis?

Some companies focus more on identifying strengths, while others prioritize weaknesses, which can sometimes be perceived as easier to address.