1. SEM2
4.05 Part II SWOT Analysis

2. What is SWOT?
SWOT is an anagram that stands for Strengths, Weaknesses, Opportunities, and Threats.

3. Strengths, Weaknesses, Opportunities, and Threats
Any resource or capability your business has that can help you gain a competitive advantage in your industry
Weakness
Any limitation or shortcoming your business has that can keep you from achieving your objectives
Opportunity
Any favorable situation in the environment surrounding your business
Threat
Any unfavorable situation in the environment surrounding your business

5. BENEFITS Benefits of conducting a SWOT analysis:
Becoming aware of issues that you hadn’t thought of before
Having a “filter” for a great deal of information
Gaining new insights about your business environment by applying SWOT to a competitor’s company

6. STRENGTHS Strengths are internal - under your control.
What are our advantages?
What do we do well (what is our expertise)?
What are our assets?
What resources do we have access to?
Where are we making money?

7. STRENGTHS Examples of strengths:
A product or service that you offer that no one else in your area does
A convenient location
Strong brand recognition
The skills and talents of your staff
Once a SWOT analysis identifies an internal strength, a business can use that strength to take advantage of a external opportunity

8. WEAKNESSES Weaknesses are internal - under your control.
What can we improve?
What resources do we lack?
Where are we losing money?
What are our competitors doing better than we are?
Examples of Weaknesses:
Lack of expertise, experience, or management depth
Bad reputation among the public
Poor communication among staff members
Weak brand name

9. external threat attacking
QUESTION
A SWOT analysis indicates that customers' buying preferences are changing, but the business has a very limited product line. This is an example of an
external threat attacking
an internal weakness

10. OPPORTUNITIES Opportunities are external -out of your control.
Collect information about the environment surrounding your business.
What are the newest technological breakthroughs?
What new needs of customers can we meet?
What economic trends are beneficial to us?
What niches have our competitors missed?

11. OPPORTUNITIES Examples of opportunities: A new software development
An improved mechanical process
A corporate merger
Failure of another company

12. THREATS Threats are external - of your control. Examples of threats:
What obstacles do we face?
What is our competition doing?
What economic trends are harmful to us?
Where are we vulnerable?
Do we have money problems?
Examples of threats:
New competition moving into your area
A new tax that your business owes the government
A new law that your business must follow
Government regulation
A new trend sweeping the public