The Value and Basics of SWOT Analysis: An Overview

The video tutorial explains SWOT analysis, detailing its components: strengths, weaknesses, opportunities, and threats. Internal factors like strengths and weaknesses are contrasted with external factors such as opportunities and threats, often analyzed using PESTLE. A ship analogy illustrates how internal and external factors affect a business. The tutorial applies SWOT to Sainsbury's, highlighting its strengths, weaknesses, opportunities, and threats. It concludes with the benefits and limitations of SWOT, emphasizing its role in strategic decision-making but noting its time-consuming nature and inability to dictate final decisions.

What does the 'O' in SWOT stand for?

• Operations

• Opportunities

• Obstacles

• Objectives

In the ship analogy, what represents the internal factors?

• Storms

• Crew and provisions

• Piracy

• Rocks

Which of the following is considered an external factor in SWOT analysis?

• Staff skills

• Company reputation

• Economic trends

• Product quality

What is one of Sainsbury's strengths according to the SWOT analysis?

• Low liquidity

• Unclear direction

• Good reputation

• High staff turnover

Which of the following is a potential threat to Sainsbury's?

• Sunk rival ship

• Competitive market

• Disciplined crew

• High tide

What is a key benefit of using SWOT analysis?

• It is quick to complete

• It focuses only on internal factors

• It guarantees the correct decision

• It helps in prevention rather than cure

What is a limitation of SWOT analysis?

• It always leads to the wrong decision

• It ignores external factors

• It is time-consuming

• It is too simple