1.3 SWOT analysis and influences revision

What is a SWOT analysis?

A framework for identifying Strengths, Weaknesses, Opportunities, and Threats of a business.

What does 'S' in SWOT stand for?

Strengths of the business.

What does 'W' in SWOT stand for?

Weaknesses of the business.

What does 'O' in SWOT stand for?

Opportunities available to the business.

What does 'T' in SWOT stand for?

Threats to the business.

How can external influences affect a business?

External influences can alter the business's course, creating opportunities to exploit and threats to avoid.

What are internal forces in a business context?

Factors that operate within the organization and are largely within the control of management.

Give an example of an economic influence on business.

The Covid pandemic created an opportunity for supermarkets due to increased consumer spending on groceries.

What is an example of a strength related to location influence?

The butcher’s block in Wahroonga is well positioned close to customers including schools.

What is an example of a weakness related to location influence?

Traffic in Wahroonga can make parking difficult for customers.

What are competitive influences?

Factors that emerge from competition in the market that can pose opportunities or threats to a business.

What could be a technological influence on a business?

Changes in technology that can create opportunities for efficiency or obsolescence of products.

How can management influence be a weakness for a business?

Poor management decisions can lead to operational inefficiencies or low employee morale.