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BAC2 ss · Business and Business Model Design
Business strategy and analytical methods: case studies · Ex-ante evaluation of business models

SWOT analysis

Having a good idea and looking at it fondly is not enough to know whether it will work. SWOT forces you to do the opposite of what feels natural: to look for your own weaknesses and outside threats too, before competitors or the market do it for you.

Before you start, make sure you know: Searching for information and analysing the competition (4th ESO)

What SWOT is: internal and external

SWOT matrix with four quadrants divided into internal factors (strengths and weaknesses) and external factors (opportunities and threats). internal external Strengthswhat we do well Opportunitiesthe good outside Weaknesseswhat we struggle with Threatswhat complicates things for us
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Explain what the acronym SWOT stands for and what distinguishes internal factors from external ones, giving an example of each quadrant for a local greengrocer.

Explain what the acronym SWOT stands for and what distinguishes internal factors from external ones, giving an example of each quadrant for a local greengrocer.

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Explain the difference between internal and external factors in a SWOT analysis, with two examples of each type for a tattoo studio.

Explain the difference between internal and external factors in a SWOT analysis, with two examples of each type for a tattoo studio.

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Building a SWOT with good judgement

Diagram of the two questions for classifying a factor (does it depend on us? and does it help or harm us?) with two example outcomes: internal and positive is a strength, external and negative is a threat. does it depend on us? does it help or harm us? internal + positive= strengthexternal + negative= threat
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Classify these factors for a tutoring academy into the corresponding quadrant of a SWOT analysis: teachers highly valued by students, opening of a competing centre…

Classify these factors for a tutoring academy into the corresponding quadrant of a SWOT analysis: teachers highly valued by students, opening of a competing centre opposite, premises that are too small, and a public grant for training courses.

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About a bakery, we know: its own bakery workshop with traditional family recipes (internal), premises without a shop window (internal), a neighbourhood with many young…

About a bakery, we know: its own bakery workshop with traditional family recipes (internal), premises without a shop window (internal), a neighbourhood with many young families (external), and an increase in the price of flour (external). Construct its SWOT matrix by classifying each factor and add one further justified factor to each quadrant.

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From quadrants to strategy

Diagram of the cross-relationships between the four SWOT quadrants to generate SO, WO, ST and WT strategies. Strengths Opportunities Weaknesses Threats SO: S + O diagonal → WO: W + O · ST: S + T WT: W + T
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Cross-referencing the SWOT quadrants generates four types of strategy: SO (using strengths to take advantage of opportunities), WO (overcoming weaknesses by taking…

Cross-referencing the SWOT quadrants generates four types of strategy: SO (using strengths to take advantage of opportunities), WO (overcoming weaknesses by taking advantage of opportunities), ST (using strengths to avoid threats), and WT (minimising weaknesses and avoiding threats to survive). Explain each with a short example based on a bicycle delivery company.

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A florist's SWOT is summarised as follows: S — own same-day delivery; W — an old website that does not allow orders; O — a boom in weddings in the area; T — the arrival…

A florist's SWOT is summarised as follows: S — own same-day delivery; W — an old website that does not allow orders; O — a boom in weddings in the area; T — the arrival of low-cost florists. Formulate an SO strategy and a WO strategy by crossing the factors, and explain which factors each one combines.

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"Gráficas del Sur" is a commercial printing company facing the following situation: fully paid-off large-run offset machinery that is slow to set up; highly skilled…

"Gráficas del Sur" is a commercial printing company facing the following situation: fully paid-off large-run offset machinery that is slow to set up; highly skilled staff in artisanal bookbinding; a 35% drop in demand for paper catalogues and advertising brochures; and 50% growth in orders for short on-demand runs (self-published books and eco-friendly packaging for e-commerce).

  1. a) Design the full CAME matrix for the printing company, proposing a specific and coherent strategic action for each of the four guidelines (Correct, Adapt/Face, Maintain, and Exploit) based on the data provided.
  2. b) If the company is experiencing short-term cash flow constraints and has limited bank borrowing capacity, reasonably justify which of the four designed actions it should prioritise during the first six months.
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Typical mistakes and limits of SWOT

Prioritisation diagram: a list of 15 unordered factors is reduced to 3 prioritised key factors. 15 factorsno order 3 factorskey, prioritised
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Explain two common mistakes when filling in a SWOT (confusing it with a wish list, mixing internal factors with external ones, leaving it without updating) and why each…

Explain two common mistakes when filling in a SWOT (confusing it with a wish list, mixing internal factors with external ones, leaving it without updating) and why each mistake turns the tool into a useless one.

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A team carries out a SWOT analysis for its project and lists six strengths, five opportunities, one weakness, and no threats. Critique this analysis: what flaws in…

A team carries out a SWOT analysis for its project and lists six strengths, five opportunities, one weakness, and no threats. Critique this analysis: what flaws in approach does it reveal, why an 'all-positive' SWOT analysis is useless, and how you would require the team to find real threats.

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A coffee shop chain conducted a SWOT analysis in January listing 20 factors, giving them all the same weight, including: "T: potential rise in agricultural costs at…

A coffee shop chain conducted a SWOT analysis in January listing 20 factors, giving them all the same weight, including: "T: potential rise in agricultural costs at origin" and "W: the warehouse door handle often comes loose". Upon noting that there were 11 strengths compared to only 3 threats, the management committee approved opening four new locations. Six months later, the international price of green coffee rose by 55% and the company suffered severe operating losses.

  1. a) Based on this case, justify the three main methodological limitations of traditional SWOT analysis (subjectivity, static view, and lack of weighting or hierarchy).
  2. b) Design a methodological proposal to correct these flaws before undertaking a new investment, detailing how you would quantify the probability and impact of external factors.
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Summary

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