SWOT analyses

A strategy is a plan of action designed to achieve a long-term objective.

When making plans or developing a business strategy it is important to gather important

information a business can use a variety of methods to this information. An internal audit is an
analysis of the business. It attempts to identify its strengths and weaknesses of a business. In a large
business, the internal audit might be conducted by outside management or outside consultation this
will help provide a more independent analysis of the business, in an internal audit may cover
products and their cost, quality, and development.

Finance includes profit, assets, and cash flow.

It also looks into the internal structure of the organization it looks at diverational and

HR looks at skills training and internal requirements.

The external audit is an analysis of the external influences of the business. An external audit would
look at the size and future of the market such as the size and market tendency.

The charities of customers in the market, the products on offer, and the pricing structure such as
the minimum pricing requirement. The production capacity and marketing methods of the
competitors, how likely are new competitors to enter the market, and how likely they are to leave
the market.

The profit of competitors and how they are invested.

SWOT analysis – is a method of prestioning information in a meaning full way. It looks at the internal
strengths and weaknesses of a business as well as external opportunities and threats of the business.

Strengths are positive aspects of a business that can be identified by an internal audit, strength is
what a business is good at and helps them succeed

Good management with an overall view

Motivated workers

Weakness is a negative aspect of a business that can be found in a business by an internal audit,
weakness is what the business lack

Bad management with a short-term viewpoint

Unmotivated workers

Opportunities are options or opening that a business might be able to exploit, resulting in
improvements of the business

Trade barriers reducing between countries.

The government gives the business a tax break or subsiding production.

Threats are external facts that will negatively affect your business.
High levels cash funds - S

High borrowing - W

Competitors have super access to channels of distribution -T

A market backdated by effective competitors - O

Entering a new market overseas – O & T

Alling with competitors to gain technology – O, S & T

Taken over by a competitor - T

New competitors entering the market – T & O

High-skill staff - S

Good distribution network - S

Damage image W & T

Moving to a new market segment after government regulation changers – O

Developing the outcome of a SWAT analysis into strategic objectives.

Once a SWAT analysis has been undertaken managers will show be able to build on their strengths
to exploit opportunities (using the brand name to sell new products)