3 The SWOT framework

Figure 2 SWOT analysis.

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There is a TV screen with the shadowy image of a man in the background. He is facing the viewer and writing with a stylus on a diagram displayed on the screen. The diagram says ‘SWOT Analysis’ at the top and shows four quadrants with the words Strength and Weakness in the top two quadrants and Opportunity and Threat in the bottom two.

Figure 2 SWOT analysis.

Using the SWOT framework to analyse a business situation involves studying the information in a case study closely and identifying the strengths, weaknesses, opportunities and threats mentioned. These points are then categorised in note form into the appropriate sections of a SWOT table. A SWOT table looks like this (usually without the headings ‘Internal factors’ and ‘External factors’).

Note that the categories ‘Strengths’ and ‘Weaknesses’ refer to internal factors affecting a business, while ‘Opportunities’ and ‘Threats’ refer to external factors affecting a business.

Internal factors might be the implementation of a new brand bringing changes, an increase in staffing (a strength) or lack of good training (a weakness). These can be controlled by the business itself.

External factors are things outside a business which affect it, such as rising oil prices, a new product from a competitor in the market or new tax laws. These are out of the control of the business and the business needs to respond to them.

Once the SWOT table has been completed, the information in it can then be used to write a case study analysis and make recommendations.

Using a framework to analyse a case study enables you to:

• select what is relevant from information which might otherwise appear very complex
• organise your thinking
• make proposals or recommendations based on that thinking.