Leaving Cert Business Management Activities: What do the letters SWOT stand f

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

Question 2

What do the letters SWOT stand for? Explain its use in business:

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

Step 1

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Answer

SWOT stands for:

Strengths: Internal characteristics of the business that give it an advantage over competitors.
Weaknesses: Internal factors that place the business at a disadvantage relative to competitors.
Opportunities: External factors that the business could exploit to its advantage.
Threats: External challenges that could cause trouble for the business.

Step 2

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Answer

SWOT analysis is a strategic planning tool used in various business contexts. It is especially useful for:

Planning/Decision-Making Situations: Managers utilize SWOT analysis to identify key strategic elements that can influence company initiatives. By understanding their strengths and weaknesses, businesses can make informed choices that leverage their capabilities and address vulnerabilities.
Product or Service Development: SWOT analysis helps organizations assess the market environment and align their offerings with consumer needs. It enables businesses to recognize opportunities for innovation or improvement while mitigating potential risks.