SWOT Analysis

The SWOT analysis is an analytical tool which is predominately used in corporate appraisal, as part of a strategic planing exercise. In a performance management scenario, the SWOT analysis can be used to analyse the effectiveness of the small business in terms of its strengths, weaknesses, opportunities and threats.

Strengths and Weaknesses are internal factors and relate to your business.

Opportunities and Threats are external factors relating to other businesses.

Strengths can then be built upon and consolidated, strategies to strengthen any weaknesses can be drawn up, strategies to capitalise open any opportunities can be formulated and contingencies can be made for any identified threats.

SWOT Analysis Form

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  • Identifying your strengths will help you decide on which areas you can rely.
  • You are likely to see better returns for your effort in these areas.


  • Your weakness will tell you which areas need special attention – thus turning them into strengths.
  • Alternatively, you might decide that these are areas which you should avoid.


  • Opportunities are areas which the business needs to attack: they offer earning potential.
  • You will need a strategy that allows you to make the most of the opportunity which exists.


  • Threats are areas which need to be monitored and action taken if needed.
  • The system you have to monitor your business needs to watch out for Changing or increasing areas of threat

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