Key Idea: A SWOT analysis sorts what a business knows into four boxes. This topic is how to build one, how to use it to find and judge options, and how to turn it into a recommendation.
The four boxes
- Strengths and weaknesses: inside the business.
- Opportunities and threats: the world outside it.
- Test: could the business change it by deciding to?
Using it to decide
- Pair the boxes to find options: a strength that meets an opportunity.
- Judge each option on fit, money, risk and people.
- SWOT describes; it does not decide on its own.
The recommendation
- Weigh the case for against the case against.
- Decide, and name the condition the decision depends on.
- Say what information is missing.
The words to know
| Word | Means | Do not confuse with |
|---|---|---|
| SWOT analysis | a tool that sorts a business's strengths, weaknesses, opportunities and threats | a decision |
| Internal factor | something inside the business that it controls, such as its staff or ovens | an external factor |
| External factor | something outside the business that it cannot control, such as rivals or the law | a weakness |
| Situational tool | a tool that describes where a business stands now | a tool that chooses a strategy |
Put each point in the right box with a detail from the case. For a decision, argue both sides from the boxes, then decide and say what the decision depends on.
Exam-style question
Lena's Bakery Ltd bakes all its bread at one bakehouse on Mill Lane, where one oven is failing. Its regulars queue at the High Street shop at seven every morning. Explain one strength and one weakness of Lena's Bakery Ltd.
Model answer plan
See the mark-by-mark plan — for / against / judgement, with marking guidance — in study mode.
Important: A list of facts is not an analysis. Say why each point matters, and use the boxes to argue for or against a decision.
Tap each card to check yourself.
Is a rival's new kiosk a weakness or a threat? A threat. It is outside the business: Lena cannot decide it away.
Is a failing oven a weakness or a threat? A weakness. It is inside the business, and Lena can decide to replace it.
One limitation of SWOT? Any one: it is subjective, gives no weights, is a snapshot that dates, and does not decide.
Where does a STEEPLE analysis feed a SWOT? Into the opportunities and threats: the outside world.
What makes a recommendation strong? Both sides from the case, a clear decision, and the condition it depends on.
Why pair a strength with an opportunity? It points to an option the business is well placed to take.
Exam tips
- Inside or outside: that decides the box.
- Every SWOT point needs a detail from the case.
- Use the boxes to argue both sides of a decision.
- A recommendation names its condition and any missing information.
- SWOT describes the situation; you make the decision.