ENGLISH FOR BUSINESS

INTERNAL ANALYSIS.
SWOT.
MODULE

07
Course: English for Business
Module: Internal Analysis. SWOT.

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Content

1. Internal analysis – definition 3

2. SWOT 3
2.1. Definition 3
2.2. History of SWOT 3
2.3. Benefits 4
3. SWOT analysis 4
3.1. Definition 4
3.2. Characteristics of SWOT analysis 5
3.3. How to perform the SWOT analysis 5
4. Conclusions 6
Bibliography 7
 ENGLISH FOR BUSINESS

INTERNAL ANALYSIS. SWOT

1 INTERNAL ANALYSIS

DEFINITION
Internal analysis is the process of identifying and evaluating an organization’s specific
characteristics, including its: capabilities, resources and core competences.

An internal analysis is consists of looking at the following elements: vision, mission, strategic
objectives and strategies.

2 SWOT.

2.1. DEFINITION
SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to
evaluate a company's competitive position and to develop strategic planning. SWOT analysis
assesses internal and external factors, as well as current and future potential.

2.2. HISTORY OF SWOT

While working on a research project at Stanford University around the 1960s to 1970s, Albert
Humphrey developed an analytical tool to evaluate the strategic plans and find out why
corporate planning failed. He invented this technique as SOFT analysis where: S stood for
what things are Satisfactory at present, O denoted what Opportunities can be explored, F
meant the Faults in the present and T meant the Threats that could face in the future.

The first mention of the term SWOT can be

Humphrey developed an traced back in 1964 when Urick and Orr
analytical tool to evaluate proposed the concept of SWOT analysis
which was derived from SOFT by replacing
the strategic plans and
the F for faults and W for Weaknesses. The
find out why corporate concept soon gained recognition among
planning failed ... strategic planners and management
consultants all over the world.
The new interpretation of SWOT is:
The S in SWOT now represents the strength, which give the business an advantageous edge
over the other similar businesses.
W stands for weaknesses and these weaknesses can be understood as the comparative
disadvantages that a business faces.
O represents opportunities: the external possibilities that can be explored to improve
business’s growth.
T stands for threats: the external or environmental factors which can cause problems for the
business.

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 ENGLISH FOR BUSINESS

Another important development in the history of the SWOT analysis was the development of
the SWOT matrix. In 1982, Dr Heinz Weihrich proposed the use of a 2x2 matrix for carrying
out a SWOT analysis.

2.3. BENEFITS
SWOT tool has 5 key benefits:

01 Simple to create
and practical to
use.
03 Focuses on the
key internal and
external factors
05 Initiates further
analysis.

affecting the
company.

02 Clear to
understand. 04 Helps to
identify
future goals.

3 SWOT ANALYSIS

3.1. DEFINITION
A SWOT analysis is designed to facilitate a realistic data. The firm needs to keep the analysis
accurate by avoiding beliefs and focusing on real-life contexts. Companies should use it as a
guide.

Perform a SWOT analysis before you commit to any sort of company action, whether you are
exploring new initiatives, revamping internal policies, considering opportunities or altering a
plan.

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3.2. CHARACTERISTICS OF A SWOT ANALYSIS

A SWOT analysis focuses on the four elements of the acronym, allowing companies to
identify the forces influencing a strategy, action or initiative. It assess internal and external
factors.

Human resources
(employees and
target audiences)

Financial resources
(funding, sources of
income and investment
opportunities) INTERNAL FACTORS
Strengths (S) and weaknesses (W)
refer to internal factors, which are
the resources and experience Access to natural
readily available to you. Examples resources, trademarks,
of internal factors are: patents and copyrights

Physical resources
(location, facilities
and equipment)

Political, environmental
and economic regulations
Market trends
(new products,
technology
considering
audience needs)
Funding (donations,
EXTERNAL FACTORS legislature and
other sources)
External forces influence
and affect every company,
Economic trends organization and individual.
(local, national and Examples of external factors
international are:
financial trends)

Demographics

3.3. HOW TO PERFORM THE SWOT ANALYSIS

SWOT can be done by one person or a group of members that are directly responsible in the
company. There are two steps:

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 ENGLISH FOR BUSINESS

Step. 01
Listing the firm’s key strengths and
weaknesses.
Strengths and weaknesses are the factors of the
firm’s internal environment.
Where to look for the
Resources: land, equipment, knowledge,
brand equity, intellectual property, etc.
Step. 02
Identifying opportunities andThreats.
Opportunities and threats are the external
uncontrollable factors. Opportunities represent
the external situations that bring a competitive
advantage if seized upon. Threats may damage
your company so you would better avoid them.
Where to look for them?

Core competencies PESTEL or PEST analysis: represents all the

Functional areas: management, operations,
marketing, finances, human resources
Organizational culture
major external forces affecting the
company so it’s the best place to look for
the existing or new opportunities and
threats.
Competition: competitors react to your
moves and external changes. They also
change their existing strategies or
introduce new ones because new
opportunities and threats may open at any
time.

Market changes: the most visible

opportunities and threats appear during the
market changes. New geographical markets
open up allowing the firm to increase its
export volumes or start operations in a new
country.

4 CONCLUSIONS
An internal analysis is a way to define internal competencies and weaknesses of an
organization. There are several tools that can be used to conduct this analysis but the most
common is SWOT.

A SWOT (strengths, weaknesses, opportunities and threats) analysis is a planning process

that helps your company overcome challenges and determine what new leads to pursue.

SWOT analysis means:

A strength is a resource that can be used effectively to achieve its objectives.
A weakness is a limitation, or defect that will not permit to achieve its objectives.
An opportunity is any favourable situation that is usually a trend or change that permits to
enhance its position by supplying it.
A threat is any unfavourable situation that is probably damaging to its strategy.

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BIBLIOGRAPHY

Grant, M. Strength, weakness, opportunity, and threat (SWOT) analysis. (s.f.) Recuperado de

Jurevicius, O. (2013) SWOT analysis- do it properly!. Recuperado de

Schooley, S. (2019). SWOT analysis: what it is and when to use it. Recuperado de

Thakur, S. (2010). SWOT – History and evolution. Recuperado de

IFM. (2016). SWOT (Strengths, Weaknesses, Opportunities, Threats). Recuperado de

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