SWOT Analysis Business Studies Grade 12 Study Notes

SWOT Analysis Business Studies Grade 12 Study Notes. SWOT analysis is a tool used by organizations to identify their internal strengths and weaknesses and external opportunities and threats. It is a simple yet effective way to evaluate the organization’s current situation and develop a strategic plan

SWOT Analysis Business Studies Grade 12

What is SWOT Analysis

Definition: SWOT analysis is a tool used by organizations to identify their internal strengths and weaknesses and external opportunities and threats. It is a simple yet effective way to evaluate the organization’s current situation and develop a strategic plan.

The steps involved in a SWOT analysis include:

1. Define the objective: Determine what aspect of the organization you want to analyze and the purpose of the analysis.
2. Identify strengths: List the internal factors that give the organization an advantage over others. For example, a company may have a strong brand reputation, skilled employees, or a loyal customer base.
3. Identify weaknesses: List the internal factors that give the organization a disadvantage compared to others. For example, a company may have outdated technology, a high employee turnover rate, or poor financial performance.
4. Identify opportunities: List the external factors that may benefit the organization. For example, a new market opening up, favorable government policies, or emerging technologies.
5. Identify threats: List the external factors that may harm the organization. For example, increased competition, changes in customer preferences, or economic downturns.
6. Analyze the SWOT: Evaluate the information gathered in the previous steps and identify areas that require further attention.
7. Develop a strategic plan: Based on the analysis, develop a plan to address the identified strengths, weaknesses, opportunities, and threats.

Examples of SWOT analysis in business include:

Here are some examples of SWOT analysis in business:

1. Example One:
   • Strengths: Strong brand recognition, talented employees, efficient production processes.
   • Weaknesses: Limited product range, high employee turnover, lack of financial resources.
   • Opportunities: Growing market demand, favorable government policies, strategic partnerships.
   • Threats: Increased competition, changing consumer trends, economic downturns.
2. Example Two:
   • Strengths: Innovative products, strong financial position, loyal customer base.
   • Weaknesses: Limited market share, lack of diversification, low employee morale.
   • Opportunities: Growing demand for eco-friendly products, expanding into new markets, new distribution channels.
   • Threats: Intense competition, changing regulatory environment, economic instability.
3. Example Three:
   • Strengths: Highly skilled workforce, strong intellectual property, efficient supply chain.
   • Weaknesses: Limited global presence, high production costs, outdated technology.
   • Opportunities: Increasing demand for technology-based solutions, strategic partnerships, expanding into emerging markets.
   • Threats: Intense competition from established players, changing government regulations, economic uncertainty.
4. Example Four:
   • Strengths: Established customer base, diversified product portfolio, strong financial performance.
   • Weaknesses: Limited innovation, outdated marketing strategies, low employee engagement.
   • Opportunities: Growing demand for online sales, expansion into new geographies, strategic acquisitions.
   • Threats: Increasing competition from e-commerce giants, changing consumer preferences, economic slowdown.

Originally posted 2024-03-08 10:52:05.