Exercises: SWOT analysis

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.

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.

The figure shows the SWOT matrix with three of its quadrants completed. Identify the missing quadrant, marked with '?', explain what type of factors it includes, and give two examples for a local corner shop.

Classify these factors of a coffee shop into the corresponding SWOT quadrant: fast wifi and a good atmosphere for working, a rise in the price of coffee, the neighbourhood gains new offices and an old coffee machine that often breaks down.

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

Within the external analysis, explain what distinguishes an opportunity from a threat, with an example of each for a neighbourhood hairdresser.

Produce a mini-SWOT about yourself as a candidate for a summer job: write a realistic factor in each quadrant and explain why knowing your weaknesses also helps you prepare for the interview.

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.

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.

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.

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.

About a bicycle workshop we know: very experienced mechanics (internal), small premises with no shop window (internal), the council is extending the cycle lanes (external) and the big sports chains sell cheap bikes (external). Build its SWOT by classifying each factor and add one more reasoned factor to each quadrant.

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.

A team notes fifteen factors in its SWOT and does not know where to start. Propose a method for prioritising (assessing the impact and probability of each factor, keeping the three key ones per quadrant) and explain why a SWOT without priorities paralyses instead of guiding.

Produce the SWOT of your own project: a peer tutoring app between students. Write two factors per quadrant, be honest with the weaknesses and formulate a specific WO strategy.

A SWOT that does not end in actions is an empty exercise. Starting from a pet shop's SWOT (S — personalised service; W — little parking; O — more and more homes with pets; T — online shops with low prices), turn each strategy into a specific action with an owner and a deadline.

«Academia Gauss» has been preparing students for university entrance exams for 15 years with a 96% pass rate and a highly renowned in-house teaching staff, but its physical classrooms are at 90% capacity and the rent for its downtown premises has increased by 20%. Management wants to grow by launching a nationwide online platform. However, its current website only posts schedules in PDF format and digitally native academies offer subscriptions for €19,99/month compared to its in-person rate of €120,0/month.

1. a) Classify four specific factors from the case into the SWOT matrix (one per quadrant), justifying why each one is internal (controllable) or external (uncontrollable) in nature.
2. b) Design an SO (offensive) strategy and a WO (reorientation) strategy, explicitly stating which specific factors you cross in each one and how they resolve the academy's dilemma between price and reputation.

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.

A strategic audit report delivered to a software development company states: "Having a small staff of only 8 highly specialised engineers is an undeniable weakness that hinders growth and must be corrected immediately by hiring 30 junior programmers".

1. a) Refute the report's conclusion by thoroughly justifying how this same internal factor acts as a decisive strength or as a limiting weakness depending on the chosen competitive strategy (for example, development of custom, high-margin cybersecurity algorithms versus mass development of low-cost standard apps).
2. b) Propose another internal resource or capability of a company and demonstrate in detail how its sign changes (from strength to weakness, or vice versa) depending on the strategic positioning adopted by management.

"MarViva" operates with two rigid inflatable boats offering snorkelling tours in a marine reserve. It employs marine biologists as guides (highly rated on social media) and has exclusive sales agreements with luxury hotels. However, its fixed costs for mooring and depreciation are high, 70% of its revenue is concentrated between July and August, and the maritime authority prohibits sailing when waves exceed 1,2 metres (a circumstance that occurred on 25% of the days last summer). In addition, local paddle surf schools that do not pay reserve fees and charge half the price per customer have proliferated.

1. a) Prepare MarViva's SWOT matrix, accurately classifying two factors per quadrant drawn directly from the case.
2. b) Formulate an SO strategy to maximise operating margin and an ST strategy to neutralise low-cost competitors without engaging in a price war.
3. c) Evaluate which environmental factor represents the greatest threat to the company's liquidity and what operational management measure you would recommend to mitigate it.

A new European directive will require 50% of commercial packaging to be reusable or compostable within three years, penalising single-use plastics with €0,45/kg. Two companies in the sector react in completely opposite ways: "PlastikSA" (a traditional manufacturer with fully depreciated polystyrene injection lines) considers it a critical threat, while "EcoFilm" (a bioplastics startup using agricultural waste) regards it as its greatest opportunity.

1. a) Drawing on the resource-based view, justify why the very same change in the legal environment falls into opposite quadrants of the SWOT matrix for each of these companies.
2. b) Design a strategic turnaround plan for PlastikSA that transforms this regulatory threat into a viable opportunity, detailing what adjustments to its value chain and R&D investments it should carry out.

A group of entrepreneurs plans to open a boutique gym specialising in high-intensity functional training in a medium-high per capita income neighbourhood. In their preliminary study, they gather: an ageing population according to municipal census data, an increase in VAT on sports services from 10% to 21%, widespread adoption of smart fitness trackers, ownership of mortgage-free commercial premises, and a lack of prior experience in sports facility management.

1. a) Classify these data, distinguishing which correspond to the dimensions of the PESTEL analysis and which belong to the internal analysis of the SWOT.
2. b) Argue the mandatory methodological sequence between both tools: why is it a methodological error to draft the threats and opportunities of the SWOT before completing the PESTEL?
3. c) Select two factors from the case's PESTEL and translate them into a specific opportunity and threat for this particular boutique gym.

"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.

The management committee of an urban fashion chain presents the following SWOT analysis:

• Strengths: "Motivated staff" and "Good image".

• Weaknesses: "Lack of communication between departments".

• Opportunities: "The market is very broad" and "Boom in online commerce".

• Threats: "Aggressive competition" and "Complex macroeconomic situation".

1. a) Critically audit this SWOT: argue why this wording turns the matrix into a rhetorical document without operational value and explain what financial and strategic risks the company runs if it allocates its budget based on this diagnosis.
2. b) Reformulate at least three of these vague statements, transforming them into verifiable, quantifiable, and actionable strategic factors for the retail textile sector.