🧭 SWOT as a decision-making tool
Big Idea: SWOT isn't just a box to fill in — it's a tool for making better strategic decisions. The real value comes from USING the analysis to evaluate options and choose the best path forward. 🎯
Businesses can use SWOT to evaluate options like expansion, takeovers, new products or entering new markets.
- Does this option play to our strengths?
- Will it expose our weaknesses?
- Does it take advantage of an opportunity?
- Could threats undermine it?
🔗 Matching SWOT to options
When exam questions ask you to choose between Option A and Option B, SWOT gives you the structure.
- Option A might use strengths to exploit an opportunity → low risk, good fit
- Option B might require overcoming a weakness while facing a threat → high risk
- The best choice aligns with strengths and opportunities while minimising threats
Example: A business with strong brand (strength) sees a growing market (opportunity). Option A (expand into that market) uses both. Option B (diversify into an unknown market) exposes weakness in experience.
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👥 Stakeholder considerations
Good strategic decisions consider how different stakeholders will be affected.
- Shareholders — will this option increase profits and share value?
- Employees — will jobs be created or lost? Will morale change?
- Customers — will the product or service improve?
- Community — environmental or social impact?
- Suppliers — will relationships strengthen or weaken?
Exam tip: Mentioning stakeholder impact in 10-mark questions shows evaluation skills and helps you reach the top mark bands.
📊 Using financial data with SWOT
The strongest exam answers combine SWOT with numbers from the case study.
- Use profit figures, ratios or cash flow data to support your arguments
- A strong financial position (strength) makes risky options more feasible
- Poor cash flow (weakness) may rule out expensive options
- Market growth data (opportunity) supports expansion arguments
Don't just quote numbers — explain what they MEAN for the decision. 'Cash reserves of $2m' is a fact. 'This means the business can afford the $1.5m expansion without borrowing' is analysis.