SWOT Analysis

SWOT Analysis involve looking at internal strengths (S) and weaknesses (W) and external opportunities (O) and threats (T) that a business could face.

STRENGHTS: these are the positive aspects within the internal audit of a business :

• strong leaders
• highly motivated&loyal workforce
• USP
• loyal customers
• an innovative market department

WEAKNESSES: these are the negative aspects within the internal audit of a business:

• unmotivated staff with high staff turnover
• too many layers of management
• out of date products
• poor cash flow and growing debt
• poor health&safety
• outdated machinery

OPPORTUNITIES: external audit opportunities such as (outside the business) :

• a new overseas market opening up following a political change
• a fall in cost of essential raw materials such as oil
• low interest rate=greater investment
• fall in exchange rate= exports cheaper
• collapse of a major rival in the market

THREATS: external audit threats for a business:

• new entrant in the market
• competitors having better workforce ( better productivity)
• competitors having more experienced CEOs and managers
• recession
• new legislation to improve the rights of employees
• ethical pressure
• change in social attitude towards what a business sells