Key Idea: At HL, SWOT analysis is not just about classifying points correctly. Students are expected to use SWOT to build strategic judgement, compare options, integrate financial and stakeholder evidence, and justify a final recommendation using the stimulus material.
🏢 Internal factors: **Strengths —** what the business does well. **Weaknesses —** internal limitations or problems. **Controllable —** management can influence them. **Used to judge capability —** can this business actually carry out the strategy?.
🌍 External factors: **Opportunities —** favourable external developments. **Threats —** external risks or pressures. **Less controllable —** the business must respond to them. **Used to judge environment —** how attractive or dangerous is the context?.
[Diagram: swot-grid]
🧠 How HL students should use SWOT: **Compare strategic options —** which option fits the business better?. **Test strategic fit —** does the option use strengths and exploit opportunities?. **Assess implementation risk —** do weaknesses make the option unrealistic?. **Support recommendations —** use SWOT as evidence, not as a list.
⚠️ Limitations examiners expect: **Subjective —** different managers may classify factors differently. **No prioritisation —** all points can appear equally important. **Static snapshot —** may not reflect rapid change. **Needs support from other tools —** finance, stakeholders, STEEPLE, Ansoff.
Top-band HL answers do more than identify SWOT factors. They integrate stimulus material effectively, make balanced arguments, and explain limitations of the case or evidence when evaluating options.
For a 10-mark-style response, a strong structure is: Option A using SWOT evidence → Option B using SWOT evidence → compare strategic fit, risk and stakeholder impact → justified recommendation.
Important: Common HL mistake: students write a SWOT list instead of an argument. A SWOT table alone does not evaluate.
- Extract relevant SWOT evidence from the case
- Classify each factor correctly
- Explain why the factor matters strategically
- Link the factor to the option or decision
- Compare alternatives using fit, risk and likely impact
- Finish with a justified recommendation