SWOT Analysis (DP IB Business Management)

What the business is good at
For example:

• Qualities that separate the business from rivals

• Internal resources such as skilled staff or a particular innovation

• Possession of assets such as capital, patents or intellectual property

• A loyal customer base

• Effective leadership

What the business does poorly
For example:

• Ways in which the business lags behind competitors

• Resource or capital limitations, including labour and finance

• Lack of a competitive advantage

• Lack of a unique selling proposition (USP)

• Poor online presence

Options a business may exploit to enjoy further success

For example:

• Developing markets for specific products become apparent

• Few competitors exist

• A changing legal or political environment positively impacts on business processes and decisions

• Social or technological developments create an emerging need for the businesses products

• Economic indicators becoming more favourable

• A potential for positive media coverage of the business

Hazards that have the potential to damage business performance

For example:

• New or emerging competitors are gaining market share

• A changing legal or political environment negatively impacting on business processes and decisions

• Social or technological developments threaten obsolescence of products

• Economic indicators becoming less favourable

• Negative press coverage

• Changing customer attitudes towards the business

The accuracy and reliability of the data used for SWOT analysis greatly influence its usefulness

If the information used for analysis is outdated, incomplete or biased, it can lead to flawed conclusions and ineffective decision-making

SWOT analysis requires a fair and unbiased assessment of the organisation's internal and external factors

If the analysis is influenced by personal biases, preconceived notions or subjective opinions, it can undermine the usefulness of the analysis

Superficial analysis may overlook important factors or fail to capture the complexity of the organisation's environment

A comprehensive and thorough analysis can provide more accurate insights and improve the usefulness of SWOT analysis

SWOT analysis should involve input from various stakeholders within the organisation, including employees, managers, customers, suppliers, and industry experts

Their diverse perspectives can provide a broader understanding of the organisation's strengths, weaknesses, opportunities and threats, thus increasing the usefulness of the analysis

As market conditions, technology and consumer preferences change over time, the relevance of identified strengths, weaknesses, opportunities and threats may also shift

Regular updates and revisions to the analysis are necessary to ensure its usefulness