3.7.1 - SWOT analysis
SWOT analysis is one part of the process of strategic planning. It involves an internal and
external audit which may take place before a business develops an appropriate strategy.
Model/theory
Key points
A SWOT analysis will be unique to each business (and for different parts of the business). It
will change over time as conditions change and so the analysis needs to be undertaken
regularly.
However, SWOT analysis does not guarantee that a strategy is successful. For example,
conditions may change faster than the business has realised, the wrong strategy may be
selected or it may be poorly implemented.
Strengths and weaknesses
Strengths and Weaknesses are internal features of the present position of a business.
For example:
strengths might include a good distribution network, a good cash flow position or well
trained staff
weaknesses might include an over-emphasis on the UK market or a weakened brand due to
several product recalls.
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SWOT analysis is one part of the process of strategic planning. It involves an internal and
external audit which may take place before a business develops an appropriate strategy.
Model/theory
Key points
A SWOT analysis will be unique to each business (and for different parts of the business). It
will change over time as conditions change and so the analysis needs to be undertaken
regularly.
However, SWOT analysis does not guarantee that a strategy is successful. For example,
conditions may change faster than the business has realised, the wrong strategy may be
selected or it may be poorly implemented.
Strengths and weaknesses
Strengths and Weaknesses are internal features of the present position of a business.
For example:
strengths might include a good distribution network, a good cash flow position or well
trained staff
weaknesses might include an over-emphasis on the UK market or a weakened brand due to
several product recalls.
1|Page
