IB Business Management SL | Business Management Toolkit

BMT 1 SWOT Analysis | IB Business Management SL

SWOT analysis is one of the most flexible tools in the IB Business Management Toolkit. It helps students and managers organize evidence about a business by separating internal strengths and weaknesses from external opportunities and threats. Used well, SWOT is not just a four-box list. It becomes a structured way to understand a business situation, compare strategic options and justify a recommendation.

• Strengths
• Weaknesses
• Opportunities
• Threats
• Internal factors
• External factors
• Strategy matching
• Exam evaluation

What Is SWOT Analysis?

SWOT analysis is a strategic planning and decision-making tool used to identify the internal and external factors that affect an organization. SWOT stands for strengths, weaknesses, opportunities and threats. Strengths are internal positive factors. Weaknesses are internal negative factors. Opportunities are external positive factors. Threats are external negative factors.

The purpose of SWOT analysis is to make a business situation easier to understand. A manager may be facing many pieces of information at once: falling sales, a new competitor, strong brand loyalty, rising costs, new technology, a motivated workforce and a possible export market. SWOT helps organize that information into a simple framework. Once the information is organized, managers can decide which issues matter most and what action should follow.

In IB Business Management SL, SWOT analysis is useful because it encourages students to apply knowledge from across the course. A strength may come from finance, such as high liquidity. A weakness may come from operations, such as low capacity. An opportunity may come from marketing, such as a growing customer segment. A threat may come from the external environment, such as new regulation or a recession. This makes SWOT a useful bridging tool between different business functions.

A basic SWOT matrix is easy to draw, but a strong SWOT answer requires judgement. The best IB answers do not simply list random points. They choose relevant factors, support them with case evidence, explain why they matter and use them to recommend a realistic strategy. A weak SWOT says, "strong brand" or "competition." A stronger SWOT says, "the brand has high recognition among teenagers, which supports a premium pricing strategy, but a new low-cost competitor threatens price-sensitive customers."

Internal vs External Factors

The most important first step in SWOT analysis is separating internal and external factors. Internal factors are inside the organization and can usually be influenced by management. These include employees, finance, production methods, culture, leadership, location, brand identity, customer service systems and product quality. Internal factors become strengths if they help the business, and weaknesses if they harm the business.

External factors are outside the direct control of the organization. These include competitors, customers, economic conditions, government policy, exchange rates, new technology, social trends, environmental issues and legal change. External factors become opportunities if they create a possible benefit, and threats if they create a possible risk.

This distinction matters in exams because students often misclassify factors. "Competition" is not a weakness; it is usually a threat because it comes from outside the business. "Poor customer service" is not a threat; it is usually a weakness because it is an internal problem. "Growing demand for sustainable products" is not a strength by itself; it is an opportunity unless the business already has strong sustainable capabilities. A factor becomes a strength only when it belongs to the business and gives it an advantage.

Strengths in SWOT Analysis

Strengths are internal positive factors that give an organization an advantage or help it achieve objectives. A strength may be a resource, capability, reputation, relationship, system or skill. In IB Business Management, strengths should be relative. A business may have good customer service, but it is only a major strategic strength if that service is better than competitors or important to customers.

Financial strengths include strong cash flow, high liquidity, access to finance, low debt, high profit margins or stable revenue. These strengths can support growth, investment, marketing campaigns and innovation. For example, a business with strong retained profit may finance expansion without taking a large bank loan. In a SWOT answer, this could support a recommendation to develop a new product or enter a new market.

Human resource strengths include skilled employees, strong leadership, low labour turnover, effective training, high motivation and a collaborative culture. These strengths matter because employees influence productivity, service quality, innovation and customer experience. A restaurant with experienced chefs and low staff turnover may have a quality advantage over rivals. A technology business with talented software developers may innovate faster than competitors.

Operational strengths include efficient production, reliable suppliers, strong quality control, flexible capacity, low waste, good location and effective inventory management. These strengths connect strongly to cost, speed, quality and dependability. A manufacturer using lean production may reduce waste and lower costs. A retailer located near a busy transport hub may attract high footfall. A logistics business with advanced tracking systems may provide better delivery reliability.

Marketing strengths include a strong brand, loyal customer base, high market share, effective social media presence, clear positioning, useful market research and a strong distribution network. These strengths help a business attract and retain customers. A well-known brand may support premium pricing. A large customer database may make targeted promotion more effective. A successful e-commerce channel may reduce dependence on physical stores.

Product and service strengths include high quality, unique design, intellectual property, strong after-sales service, customization, convenience and reliable performance. These strengths can support differentiation. For example, a business with patented technology may be protected from direct imitation. A service business with fast response times may create customer loyalty. In a SWOT matrix, product strengths should be connected to the business objective, such as increasing market share or improving profitability.

Weaknesses in SWOT Analysis

Weaknesses are internal negative factors that place the organization at a disadvantage. A weakness may limit growth, reduce efficiency, weaken customer satisfaction, increase costs or make the business more vulnerable to external threats. A useful weakness is specific and linked to impact. "Weak finance" is vague. "Low liquidity makes it difficult to fund a new marketing campaign" is much stronger.

Financial weaknesses include poor cash flow, high debt, low profit margins, rising costs, limited access to finance and dependence on one revenue stream. These weaknesses can restrict strategic choices. A business may see an attractive opportunity but be unable to exploit it because it lacks funds. A high-debt business may face pressure if interest rates rise. In exams, connect financial weaknesses to risk, investment and stakeholder confidence.

Human resource weaknesses include low motivation, poor communication, skills shortages, high labour turnover, weak leadership, industrial conflict and ineffective training. These weaknesses can reduce productivity and quality. A hotel with high staff turnover may struggle to deliver consistent service. A start-up with weak management systems may grow too quickly and lose control. In SWOT analysis, HR weaknesses are often important because people affect every business function.

Operational weaknesses include outdated equipment, low capacity, poor quality control, unreliable suppliers, high waste, long lead times and poor location. These weaknesses can damage customer satisfaction and raise costs. A business may have strong demand but be unable to meet it because production capacity is too low. A retailer may have a good product but a poor location. A manufacturer may lose customers because of late deliveries.

Marketing weaknesses include low brand awareness, unclear positioning, limited promotion budget, poor customer data, weak online presence or dependence on one market segment. These weaknesses can prevent a business from reaching customers effectively. A small business may have a high-quality product but low sales because few customers know it exists. A brand may fail if its image does not match customer expectations.

Product and service weaknesses include poor design, limited product range, weak after-sales support, low reliability, lack of innovation and poor customer experience. These weaknesses may make the business vulnerable to competitors. A product that is technically outdated may lose market share even if the business has good distribution. A service that is inconsistent may damage customer loyalty and online reviews.

Opportunities in SWOT Analysis

Opportunities are external positive factors that the business could exploit. Opportunities do not guarantee success. They only show possible favorable conditions. The business still needs resources and capabilities to benefit from them. A growing market is an opportunity, but a business with weak capacity or poor finance may not be able to use it effectively.

Market opportunities include rising demand, new customer segments, changing consumer tastes, increased disposable income and expansion into new geographic markets. For example, a growth in demand for plant-based food could be an opportunity for a restaurant or food manufacturer. A rise in tourism could be an opportunity for hotels, transport businesses and entertainment venues.

Technological opportunities include e-commerce, automation, artificial intelligence, data analytics, mobile apps, digital payment systems and new production methods. Technology can create opportunities to reduce costs, improve customer experience, reach new markets and collect better data. However, technology is not automatically an opportunity for every firm. It becomes useful only if the business can adopt it effectively and customers value the improvement.

Competitive opportunities include competitor failure, poor competitor service, market gaps, weak competitor innovation or an underserved niche. A small cafe may find an opportunity if a nearby competitor closes. A software company may find an opportunity if rivals ignore small business customers. These opportunities are often time-sensitive, so speed and resources matter.

Legal and political opportunities include subsidies, tax incentives, trade agreements, public procurement contracts and supportive regulation. For example, government grants for renewable energy may create opportunities for solar panel installers. Education policy changes may create opportunities for tutoring businesses. At the same time, legal opportunities require compliance and careful risk assessment.

Social and environmental opportunities include growing concern about sustainability, health, convenience, ethical sourcing, inclusion and local community impact. Businesses can respond with new products, clearer branding, responsible sourcing or circular business models. In IB answers, opportunities connected to sustainability can be strong because they link business decisions to ethics and stakeholder interests.

Threats in SWOT Analysis

Threats are external negative factors that could harm the organization. A threat may reduce sales, increase costs, damage reputation, disrupt supply or make a strategy less attractive. Good SWOT analysis identifies threats early so managers can prepare rather than react too late.

Competitive threats include new entrants, price wars, substitute products, aggressive promotion and stronger rival innovation. For example, a small clothing retailer may be threatened by global online platforms offering lower prices and faster delivery. A taxi company may be threatened by ride-hailing apps. A restaurant may be threatened by food delivery platforms that increase customer choice.

Economic threats include recession, inflation, rising interest rates, exchange rate changes, unemployment and falling consumer confidence. These threats can affect demand and costs. Inflation may increase raw material and wage costs. Rising interest rates may increase loan repayments. A recession may reduce demand for luxury goods. These threats are external, but managers can respond through cost control, pricing strategy, product range adjustments or market diversification.

Technological threats include new platforms, automation by competitors, cyber risks, digital disruption and product obsolescence. A business that fails to update its technology may lose efficiency and relevance. A retailer without e-commerce may lose sales to online competitors. A bank may face threats from financial technology companies. Technological threats often require investment, training and strategic change.

Legal, political and regulatory threats include new taxes, stricter environmental standards, employment law changes, import restrictions, product safety rules and data protection requirements. These threats may increase costs or limit operations. However, they can also create opportunities for businesses that adapt faster than competitors. This is why SWOT factors can sometimes be connected: a threat for one firm may be an opportunity for another.

Social and environmental threats include changing tastes, pressure groups, negative publicity, demographic shifts, climate risks and supply chain disruption. For example, a business relying on single-use plastic may face criticism and regulation. A coastal tourism business may face climate-related disruption. A brand associated with poor labour practices may suffer reputational damage.

How to Conduct a SWOT Analysis

A useful SWOT analysis starts with a clear objective. The objective might be to decide whether to launch a new product, enter a new country, change pricing, merge with another business, relocate production or respond to a competitor. Without a clear objective, SWOT becomes too broad and loses value. A SWOT for a product launch will not be exactly the same as a SWOT for a factory relocation.

The next step is to gather evidence. Evidence may come from financial accounts, market research, customer reviews, employee surveys, operations data, competitor analysis, stakeholder feedback and external research. IB students should use the case study evidence provided. A point is stronger when it is supported by data. For example, "sales increased by 18 percent last year" is stronger than "sales are good."

After evidence is gathered, classify each factor into the correct quadrant. Ask whether the factor is internal or external. Then ask whether it is positive or negative. Internal and positive means strength. Internal and negative means weakness. External and positive means opportunity. External and negative means threat. If a factor seems to fit more than one quadrant, explain the exact angle. For example, "sustainability trend" is an opportunity, while "the firm's existing recycled packaging capability" is a strength.

Next, prioritize. Not every factor deserves equal attention. A business may have ten strengths, but only two may be decisive for the decision. Ranking factors helps managers focus. Criteria for prioritization include financial impact, urgency, likelihood, stakeholder impact, strategic fit and ease of response. In an exam, prioritize by choosing the most relevant factors for the question rather than listing everything you know.

The final step is to convert analysis into action. SWOT should lead to strategy. A business might use strengths to exploit opportunities, use strengths to defend against threats, reduce weaknesses to exploit opportunities, or minimize weaknesses to avoid threats. This is sometimes called TOWS thinking because it turns the SWOT matrix into strategic options.

SWOT Matching Strategies: Turning Analysis Into Action

Many SWOT answers are descriptive. They list factors but do not explain what the business should do. To make SWOT more useful, match the quadrants to create strategic options. This helps turn the tool from a static matrix into a decision-making framework.

SO strategies are usually growth-oriented. They ask how the business can use what it does well to benefit from favorable external conditions. A company with strong research and development may use that strength to exploit demand for innovative products. A hotel with excellent customer reviews may use that strength to target a growing tourism market.

ST strategies are defensive but active. They ask how the business can use existing strengths to reduce the impact of threats. A firm with loyal customers may use loyalty programs to defend against new competitors. A business with strong supplier relationships may reduce supply disruption risks more effectively than rivals. A company with high liquidity may survive a downturn better than a highly indebted competitor.

WO strategies focus on improvement. They ask what weakness must be fixed so the business can exploit an opportunity. A retailer may need to improve its online ordering system before it can benefit from e-commerce growth. A manufacturer may need to improve quality control before entering a premium market. These strategies often require investment and change management.

WT strategies focus on survival and risk reduction. They are important when the business has internal problems and faces external danger. A business with weak cash flow and rising competition may need to cut costs, sell non-core assets, renegotiate debt or focus on its most profitable products. WT strategies may be less exciting than growth strategies, but they can be necessary.

SWOT Analysis Example: Small Coffee Shop

Consider a small independent coffee shop located near a university. The owner wants to decide whether to expand opening hours and introduce a mobile ordering app. A SWOT analysis can help organize the decision.

The SWOT suggests that mobile ordering could be useful, but only if capacity is managed. The coffee shop has a strong local reputation and convenient location, which support an SO strategy: use customer loyalty to encourage app adoption. However, limited capacity is a weakness. If mobile orders increase demand during peak times, service quality may fall. A WO strategy could be to start with a limited menu on the app and use pre-order time slots.

The large chain is a threat. The coffee shop could use an ST strategy by emphasizing personal service, local identity and student loyalty. It may not be able to compete on price against a chain, but it can differentiate through community and quality. A WT strategy could involve controlling costs, simplifying the menu and improving cash flow before committing to expensive technology.

A strong recommendation would be cautious expansion. The owner should trial mobile ordering with a small menu during term time, promote plant-based snacks, and explore catering for university events. The expansion should not be full-scale until the owner has tested demand, capacity and cash flow. This shows how SWOT can lead to a balanced decision rather than a simple list.

SWOT Analysis Example: Electric Vehicle Manufacturer

Now consider an electric vehicle manufacturer deciding whether to enter a new international market. The SWOT analysis will look different because the scale, risks and stakeholders are different.

Possible strengths include advanced battery technology, strong brand image, patents, experienced engineers and access to finance. These strengths could support market entry if consumers value innovation and sustainability. Possible weaknesses include high production costs, limited service centers, dependence on rare minerals and production delays. These weaknesses could make expansion risky if customers expect low prices and reliable after-sales support.

Opportunities might include government incentives for electric vehicles, rising fuel prices, growing environmental awareness and investment in charging infrastructure. Threats might include established car manufacturers entering the same market, changes in subsidies, supply chain disruption, trade barriers and consumer concerns about battery range.

An SO strategy could use the firm's battery technology and brand reputation to target premium customers in a market with strong environmental policies. An ST strategy could use patents and brand loyalty to defend against new competitors. A WO strategy could involve partnering with local service providers to reduce the weakness of limited after-sales support. A WT strategy could delay entry until supply chain risks and regulatory uncertainty are reduced.

This example shows why SWOT must be context-specific. The same tool can analyze a small cafe or a global manufacturer, but the evidence and judgement must change. In IB exams, this is essential. Generic SWOT points rarely score well unless they are applied to the actual organization and decision.

Advantages of SWOT Analysis

The first advantage of SWOT analysis is simplicity. The four-quadrant structure is easy to understand and quick to communicate. Managers, employees and students can use it without complex calculations. This makes SWOT useful at the start of strategic planning because it organizes a broad situation quickly.

The second advantage is flexibility. SWOT can be used for many decisions: product launches, market entry, business plans, recruitment issues, marketing campaigns, mergers, relocation, crisis management and turnaround plans. It can be applied to large multinational companies, small businesses, non-profit organizations and social enterprises.

The third advantage is that SWOT encourages a balanced view. It includes internal and external factors, as well as positive and negative factors. This helps avoid one-sided thinking. A manager who only focuses on opportunities may ignore weaknesses. A manager who only focuses on threats may miss growth possibilities. SWOT forces both sides of the situation to be considered.

The fourth advantage is that SWOT supports strategic thinking. When combined with TOWS matching, it helps managers generate strategic options. It can show whether a business should use strengths to exploit opportunities, improve weaknesses, defend against threats or reduce risk. This makes it more useful than a simple brainstorm.

The fifth advantage is that SWOT can involve stakeholders. Employees, managers, customers, suppliers and investors may have different views of strengths and weaknesses. Including multiple perspectives can improve the quality of the analysis. For example, managers may believe customer service is strong, but customer feedback may reveal slow response times. Stakeholder input can reduce bias.

Limitations of SWOT Analysis

The first limitation is subjectivity. SWOT depends on the judgement of the people creating it. Different managers may classify the same factor differently. One manager may see a new technology as an opportunity, while another sees it as a threat. This is why evidence is important. Data, research and stakeholder feedback make SWOT more reliable.

The second limitation is oversimplification. Business situations are complex, and a four-box matrix can make them look simpler than they are. A factor may have both positive and negative effects. For example, automation may be a strength because it improves efficiency, but it may also create weakness if employees lack the skills to maintain the technology. A good answer recognizes complexity instead of forcing every issue into a simple label.

The third limitation is that SWOT does not automatically prioritize. A matrix may contain many points, but it does not show which ones matter most. A minor weakness may appear beside a major threat, even though their impact is very different. Managers must rank factors by importance, urgency and likely impact. In IB answers, this is where evaluation becomes important.

The fourth limitation is that SWOT can become static. It captures a situation at a particular moment, but business environments change. A threat may become an opportunity. A strength may become less valuable. A weakness may become more serious. SWOT should be updated regularly, especially in fast-changing industries such as technology, fashion, tourism and retail.

The fifth limitation is that SWOT does not provide a final decision by itself. It organizes information and suggests strategic options, but managers still need to evaluate feasibility, cost, risk, timing and stakeholder impact. SWOT should often be used with other tools such as STEEPLE analysis, Ansoff Matrix, decision trees, financial forecasts, market research and ratio analysis.

How to Improve a SWOT Analysis

To improve SWOT analysis, start with a focused question. "SWOT analysis of Company X" is broad. "SWOT analysis of Company X's decision to expand into online sales" is much better. A focused question helps select relevant factors and prevents the matrix from becoming a general description of the whole business.

Use evidence for each point. Evidence might be a percentage change in sales, a competitor action, a customer survey result, a cash flow problem, a market trend or a production capacity figure. Evidence makes SWOT more convincing. In IB exams, evidence also shows application to the case study.

Be specific. Do not write "good employees" as a strength. Write "experienced employees with low labour turnover improve service consistency." Do not write "technology" as an opportunity. Write "growth in mobile payments creates an opportunity to reduce checkout time and improve customer convenience."

Prioritize. Not all points are equal. A business with serious cash flow problems may need to focus on liquidity before pursuing a market opportunity. A business with a strong brand but falling product quality may need to fix operations before expanding. Ranking factors helps produce a realistic recommendation.

Connect the quadrants. The best SWOT analysis does not leave strengths, weaknesses, opportunities and threats isolated. It asks how they interact. Can a strength be used to exploit an opportunity? Does a weakness make a threat more dangerous? Does an opportunity require investment the business cannot afford? Does a threat reduce the value of a strength? These connections create analysis.

SWOT and Other IB Business Tools

SWOT works well with STEEPLE analysis. STEEPLE examines social, technological, economic, environmental, political, legal and ethical external factors. These external factors can feed into the opportunities and threats sections of SWOT. For example, an economic downturn identified in STEEPLE may become a threat in SWOT. A technological trend may become an opportunity.

SWOT also works with Ansoff Matrix. Ansoff Matrix considers growth strategies: market penetration, market development, product development and diversification. SWOT can help judge which Ansoff option is suitable. A business with strong brand loyalty and a growing existing market may choose market penetration. A business with strong product development skills and a new customer need may choose product development.

SWOT can support decision trees. A SWOT may identify options, while a decision tree estimates expected financial outcomes and probabilities. For example, SWOT may suggest launching a new product, while a decision tree helps compare launch, delay or reject options under uncertain demand.

SWOT can support the Boston Consulting Group matrix. A business may identify a product as a cash cow, star, question mark or dog, then use SWOT to explain the internal and external factors affecting that product. A product may be a star because of strong market growth and strong competitive position, but SWOT may reveal threats from substitutes or weaknesses in capacity.

SWOT can also support financial analysis. If SWOT identifies high debt as a weakness, ratio analysis can provide evidence. If SWOT identifies growth in demand as an opportunity, sales forecasts and cash flow forecasts can test whether the business can afford expansion. This combination of qualitative and quantitative tools strengthens evaluation.

SWOT in IB Exam Answers

In IB Business Management SL, SWOT may appear directly or indirectly. A question may ask students to "prepare a SWOT analysis," "discuss the usefulness of SWOT analysis," "recommend a strategy using SWOT analysis," or "evaluate a decision using appropriate business tools." Even when SWOT is not named, it can help organize planning if the question involves strategic choices.

For a 4-mark or 6-mark answer, keep the response focused. Define SWOT briefly, identify relevant factors and explain their impact. Do not spend too much time drawing a perfect matrix if the question asks for analysis. Marks usually come from correct business knowledge, application and explanation.

For a 10-mark evaluative answer, SWOT should support judgement. Use the matrix to identify the key issue, then compare options. Discuss limitations and stakeholder impact. A strong answer may say that SWOT suggests expansion is attractive because the business has strong brand loyalty and the market is growing, but the recommendation depends on whether the firm can overcome cash flow weakness and supply chain threats.

Use case details. If the case says employee turnover is 28 percent, use that evidence rather than writing "staff problems." If it says online sales are growing by 40 percent, use that to support an opportunity. If it says a competitor has launched a cheaper product, use that as a threat. Application is often what separates a general answer from a high-scoring IB answer.

Evaluation should include limitations. SWOT is useful because it organizes information and helps generate strategies, but it is limited by subjectivity, lack of prioritization and dependence on accurate information. A final judgement should explain whether SWOT is enough on its own or should be combined with other tools. Usually, the best answer is that SWOT is a good starting point but not sufficient alone for major strategic decisions.

Common Student Mistakes

The first mistake is confusing internal and external factors. Remember: strengths and weaknesses are internal; opportunities and threats are external. If the business can directly control or influence the factor, it is probably internal. If it comes from the environment outside the business, it is probably external.

The second mistake is writing generic points. "Good brand" and "bad economy" are too vague. A stronger point explains why the factor matters. For example, "strong brand recognition among young consumers supports premium pricing" is a useful strength. "High inflation may reduce demand for non-essential products and increase input costs" is a useful threat.

The third mistake is listing without analysis. A SWOT matrix is not enough if the question asks for explanation or evaluation. Each point should have an impact. Ask "so what?" after every point. If the business has high customer loyalty, so what? It may reduce the risk of price increases, support repeat purchases and defend against competitors.

The fourth mistake is failing to prioritize. A SWOT with twelve points but no ranking may be less useful than a SWOT with six well-chosen points. In exams, choose the factors most relevant to the decision and explain why they matter most.

The fifth mistake is treating opportunities as guaranteed success. An opportunity is only a possible favorable external condition. A business must have resources, skills and timing to exploit it. A growing market is not useful if the business lacks finance, capacity or brand awareness.

The sixth mistake is ignoring strategy. SWOT should lead to action. If a student identifies strong brand, weak cash flow, growing demand and new competitors, the answer should explain what the business should do. For example, it might use the strong brand to launch a limited product range while avoiding overexpansion because cash flow is weak.

Practice SWOT Template

Use this template when preparing a SWOT answer. It keeps the analysis applied and avoids vague lists.

Mini Practice Case

A family-owned bakery has operated in a town center for 20 years. It has loyal customers, skilled bakers and a reputation for fresh products. However, it has limited seating, outdated online ordering and rising ingredient costs. A new housing development nearby may increase demand, and local customers are increasingly interested in healthier products. At the same time, a supermarket chain has opened a bakery section with lower prices.

A strong SWOT would identify loyal customers and skilled bakers as strengths because they support quality and repeat purchases. Limited seating and outdated online ordering are weaknesses because they restrict sales and reduce convenience. The new housing development and healthy eating trend are opportunities because they may increase demand for new products. The supermarket bakery and rising ingredient costs are threats because they may reduce sales or margins.

A possible SO strategy is to use skilled bakers to introduce healthier premium products for new residents. A WO strategy is to improve online ordering so the bakery can reach customers who want convenience. An ST strategy is to emphasize freshness, local identity and quality to defend against supermarket prices. A WT strategy is to control ingredient costs and avoid expensive expansion until demand is tested.

A balanced recommendation might be to launch a small healthy product range and improve basic online ordering before expanding seating. This uses strengths and opportunities while managing weaknesses and threats. The bakery should avoid a large investment until it has evidence that new residents will buy regularly and that margins remain acceptable despite ingredient inflation.

Revision Checklist

• Can you define SWOT analysis accurately?
• Can you separate internal and external factors?
• Can you explain strengths as internal positive factors?
• Can you explain weaknesses as internal negative factors?
• Can you explain opportunities as external positive factors?
• Can you explain threats as external negative factors?
• Can you support each SWOT point with evidence?
• Can you prioritize the most important factors?
• Can you turn SWOT into SO, ST, WO and WT strategies?
• Can you evaluate the usefulness and limitations of SWOT?
• Can you apply SWOT to finance, marketing, HR and operations decisions?
• Can you make a recommendation based on the SWOT analysis?

Frequently Asked Questions

What is SWOT analysis?

SWOT analysis is a business tool used to identify strengths, weaknesses, opportunities and threats affecting an organization or decision. It helps managers organize information and develop strategic options.

What does SWOT stand for?

SWOT stands for strengths, weaknesses, opportunities and threats.

Which parts of SWOT are internal?

Strengths and weaknesses are internal because they come from inside the organization and can usually be influenced by management.

Which parts of SWOT are external?

Opportunities and threats are external because they come from outside the organization and are usually outside direct managerial control.

Why is SWOT useful in IB Business Management?

SWOT is useful because it helps students apply case evidence, organize internal and external factors, generate strategic options and support recommendations.

What is the main limitation of SWOT analysis?

The main limitation is that SWOT can become subjective and descriptive if it is not supported with evidence, prioritization and strategic action.

How can I make SWOT analysis more evaluative?

Prioritize factors, explain their impact, connect quadrants, compare strategic options, consider limitations and finish with a justified recommendation.

Final Summary