Leaving Cert Business Management Activities (Plan, Organise, Control): 2. (a) What do the letters SWOT

2. (a) What do the letters SWOT stand for? (b) Explain its use in business: - Leaving Cert Business - Question 2 - 2007

Question 2

2. (a) What do the letters SWOT stand for? (b) Explain its use in business:

Worked Solution & Example Answer:2. (a) What do the letters SWOT stand for? (b) Explain its use in business: - Leaving Cert Business - Question 2 - 2007

Step 1

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Answer

The letters SWOT stand for:

Strengths: Internal attributes that are helpful to achieving the organization's objectives.
Weaknesses: Internal attributes that are harmful to achieving the organization's objectives.
Opportunities: External factors that the organization can exploit to its advantage.
Threats: External factors that could jeopardize the organization's success.

Step 2

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Answer

The SWOT analysis is a vital tool in business for several reasons:

Planning/Decision-Making Situations: It helps organizations assess their current position in the market, facilitating strategic planning and informed decision-making. By understanding their strengths and weaknesses, businesses can formulate strategies that leverage their advantages while addressing their shortcomings.
Product or Service Development: SWOT analysis aids in identifying market opportunities and threats, guiding the development of products or services to meet customer needs effectively. It ensures that new offerings align with organizational strengths and market demands, enhancing the likelihood of success.