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selecting a suitable strategy."},{"text":"Its future position against its competitors.","correct":false,"explanation":"This confuses SWOT with forecasting or strategic target-setting. SWOT assesses the business’s current position against its objectives before managers decide how it should move forward."},{"text":"Its market position against its suppliers.","correct":false,"explanation":"This narrows the analysis to market relationships and suppliers. SWOT provides a broader assessment of the business’s current position against the objectives it is trying to achieve."},{"text":"Its financial position against its budget.","correct":false,"explanation":"This describes part of financial variance analysis rather than SWOT. SWOT examines the business’s overall current position against its objectives, including both internal and external factors."}]},{"id":"fda939e9-9679-4039-b371-afea621a17f5","cardType":"basic","points":3,"front":"What does SWOT stand for?","back":"

Strengths
Weaknesses
Opportunities
Threats

","mcqOptions":[{"text":"

Strengths
Weaknesses
Opportunities
Threats

","correct":true,"explanation":"These four categories separate helpful and harmful factors into internal strengths and weaknesses and external opportunities and threats, creating a structured picture of the business’s position."},{"text":"

Sales
Workforce
Operations
Technology

","correct":false,"explanation":"These are business functions or resources, not the categories represented by the acronym. SWOT stands for Strengths, Weaknesses, Opportunities and Threats."},{"text":"

Strategy
Workplace
Objectives
Targets

","correct":false,"explanation":"These terms relate generally to business planning but do not expand the acronym. SWOT stands for Strengths, Weaknesses, Opportunities and Threats."},{"text":"

Successes
Worries
Outcomes
Trends

","correct":false,"explanation":"This substitutes loosely related words based only on the initials. The recognised analytical categories are Strengths, Weaknesses, Opportunities and Threats."}]},{"id":"048821ec-11a2-4cb5-9107-525cb3f75b68","cardType":"cloze","points":null,"front":"In SWOT, strengths and weaknesses are [ ]; opportunities and threats are [ ].","back":"In SWOT, strengths and weaknesses are internal; opportunities and threats are external.","mcqOptions":[{"text":"In SWOT, strengths and weaknesses are internal; opportunities and threats are external.","correct":true,"explanation":"Strengths and weaknesses arise from within the business, such as its resources and capabilities. Opportunities and threats come from changes in the external business environment."},{"text":"In SWOT, strengths and weaknesses are external; opportunities and threats are external.","correct":false,"explanation":"Treating every factor as external ignores the source of strengths and weaknesses. These are internal, while opportunities and threats arise in the external environment."},{"text":"In SWOT, strengths and weaknesses are internal; opportunities and threats are internal.","correct":false,"explanation":"Opportunities and threats cannot normally be created or controlled directly by the business because they are external. Strengths and weaknesses are the internal categories."},{"text":"In SWOT, strengths and weaknesses are external; opportunities and threats are internal.","correct":false,"explanation":"This reverses the two dimensions of SWOT. Strengths and weaknesses exist inside the business, whereas opportunities and threats originate outside it."}]},{"id":"f1e02df2-a811-4250-9de1-77a2411b35dc","cardType":"basic","points":1,"front":"If managers can directly invest in, train, repair or restructure a factor, where should it usually go in SWOT?","back":"Internal: strength or weakness.","mcqOptions":[{"text":"Internal: strength or weakness.","correct":true,"explanation":"A factor managers can directly change through investment, training, repair or restructuring exists within the business, so it is classified as an internal strength or weakness."},{"text":"External: opportunity or threat.","correct":false,"explanation":"External factors are changes outside managers’ direct control. A factor that can be directly improved or restructured is internal and should be classified as a strength or weakness."},{"text":"Internal: opportunity or threat.","correct":false,"explanation":"This correctly identifies the factor as internal but uses the wrong categories. Internal factors are strengths or weaknesses; opportunities and threats are external."},{"text":"External: strength or weakness.","correct":false,"explanation":"This combines the wrong source with the wrong category pairing. Directly controllable factors are internal, and internal factors are classified as strengths or weaknesses."}]},{"id":"4817f2cf-8d3b-44ac-9c9c-f76b26d74e4f","cardType":"basic","points":1,"front":"What decides whether a SWOT factor is helpful or harmful?","back":"The objective being considered.","mcqOptions":[{"text":"The objective being considered.","correct":true,"explanation":"A factor’s effect depends on what the business is trying to achieve. The same feature may support one objective while obstructing another, so classification requires context."},{"text":"The department being considered.","correct":false,"explanation":"A department may experience a factor differently, but helpfulness is judged against the goal being pursued. The relevant business objective determines whether the factor helps or harms."},{"text":"The competitor being considered.","correct":false,"explanation":"Competitors can influence external opportunities and threats, but they do not determine whether every factor is helpful or harmful. Its impact on the chosen objective does."},{"text":"The manager being considered.","correct":false,"explanation":"Personal managerial opinion should not determine classification. A factor is helpful or harmful according to whether it supports or obstructs the objective under consideration."}]},{"id":"71f06d17-e8c9-4e57-8397-047d50b0cd79","cardType":"cloze","points":null,"front":"A [ ] helps a business achieve objectives; a [ ] limits performance or increases vulnerability.","back":"A strength helps a business achieve objectives; a weakness limits performance or increases vulnerability.","mcqOptions":[{"text":"A strength helps a business achieve objectives; a weakness limits performance or increases vulnerability.","correct":true,"explanation":"A strength is an internal capability or resource that supports objectives, while a weakness is an internal limitation that restricts performance or leaves the business exposed."},{"text":"A opportunity helps a business achieve objectives; a weakness limits performance or increases vulnerability.","correct":false,"explanation":"An opportunity may help the business, but it is an external development rather than the helpful internal category defined here. The correct first term is strength."},{"text":"A strength helps a business achieve objectives; a threat limits performance or increases vulnerability.","correct":false,"explanation":"A threat is an external danger, whereas the sentence defines an internal limitation or vulnerability. That internal harmful factor is a weakness."},{"text":"A opportunity helps a business achieve objectives; a threat limits performance or increases vulnerability.","correct":false,"explanation":"This uses the two external SWOT categories. The definitions concern internal factors: a strength supports objectives, while a weakness limits performance or increases vulnerability."}]},{"id":"e81fe275-b31c-4210-907e-fc475a7e717e","cardType":"basic","points":1,"front":"Classify “poor cash flow” in SWOT.","back":"Weakness.","mcqOptions":[{"text":"Weakness.","correct":true,"explanation":"Poor cash flow is a harmful internal financial condition that can prevent the business paying costs or funding operations, so it is classified as a weakness."},{"text":"Strength.","correct":false,"explanation":"A strength supports performance or objectives, whereas poor cash flow restricts spending and increases financial vulnerability. It is therefore an internal weakness."},{"text":"Threat.","correct":false,"explanation":"A threat originates outside the business, such as an economic downturn or new competitor. Poor cash flow is an internal financial problem, so it is a weakness."},{"text":"Opportunity.","correct":false,"explanation":"An opportunity is a favourable external development the business could exploit. Poor cash flow is an unfavourable internal condition and is therefore a weakness."}]},{"id":"d861efcb-3280-479c-9e1f-87464ce1f172","cardType":"cloze","points":null,"front":"An [ ] is an external change that could help growth, profitability, lower costs or competitiveness.","back":"An opportunity is an external change that could help growth, profitability, lower costs or competitiveness.","mcqOptions":[{"text":"opportunity","correct":true,"explanation":"An opportunity is a favourable external development that the business may exploit to increase growth, profitability or competitiveness, or to reduce its costs."},{"text":"threat","correct":false,"explanation":"A threat is an external change that could harm performance rather than help it. A potentially beneficial external change is classified as an opportunity."},{"text":"strength","correct":false,"explanation":"A strength can help achieve objectives, but it is an existing internal capability or resource. A helpful external change is classified as an opportunity."},{"text":"weakness","correct":false,"explanation":"A weakness is a harmful internal limitation, such as poor cash flow or inadequate skills. A beneficial change in the external environment is an opportunity."}]},{"id":"21f5ab38-db08-424e-8363-2d38c74aea5a","cardType":"basic","points":1,"front":"Classify “growth in demand for electric vehicles” in SWOT.","back":"Opportunity.","mcqOptions":[{"text":"Opportunity.","correct":true,"explanation":"Growing market demand is an external development that could help the business increase sales, so it is classified as an opportunity in SWOT."},{"text":"Strength.","correct":false,"explanation":"A strength is an internal capability or resource, whereas market demand is external. Growth in demand that could increase sales is therefore an opportunity."},{"text":"Weakness.","correct":false,"explanation":"A weakness is an internal limitation that harms performance. Rising demand is an external, favourable development, so it should be classified as an opportunity."},{"text":"Threat.","correct":false,"explanation":"A threat is an external factor likely to harm the objective. Growth in demand creates potential benefits and higher sales, making it an opportunity instead."}]},{"id":"ab815670-3001-46e5-a042-94beac23aa4f","cardType":"cloze","points":null,"front":"A [ ] is an external change that could reduce sales, increase costs, damage reputation or make objectives harder.","back":"A threat is an external change that could reduce sales, increase costs, damage reputation or make objectives harder.","mcqOptions":[{"text":"threat","correct":true,"explanation":"An external change that could harm performance or obstruct objectives belongs in the threats section of a SWOT analysis."},{"text":"weakness","correct":false,"explanation":"A weakness is an internal limitation, not an external change. An external development that could harm sales, costs, reputation or objectives is a threat."},{"text":"strength","correct":false,"explanation":"A strength is an internal factor that helps the business achieve its objectives. The definition describes a harmful external change, which is a threat."},{"text":"opportunity","correct":false,"explanation":"An opportunity is an external development that could benefit the business. An external change with potentially harmful consequences is classified as a threat."}]},{"id":"b6bb0d1c-a85c-4001-aa50-a3edf9ac8b73","cardType":"basic","points":1,"front":"Classify “interest-rate rises increasing borrowing costs” in SWOT.","back":"Threat.","mcqOptions":[{"text":"Threat.","correct":true,"explanation":"Interest rates are external economic conditions, and a rise increases financing costs. This can reduce profitability and hinder objectives, so it is a threat."},{"text":"Opportunity.","correct":false,"explanation":"An opportunity is an external factor that could help the business. Higher borrowing costs generally harm cash flow and profitability, so the rise is a threat."},{"text":"Strength.","correct":false,"explanation":"A strength is an internal advantage under the business’s control. Interest-rate changes are external, and higher borrowing costs make this particular change a threat."},{"text":"Weakness.","correct":false,"explanation":"A weakness is an internal limitation, such as poor cash-flow management. The interest-rate rise itself is an external economic change, so it is a threat."}]},{"id":"95512068-38db-4914-9318-0fccb2829f2c","cardType":"basic","points":2,"front":"Why is an external threat not automatically unavoidable?","back":"

The factor is outside control.
The response can still be changed.

","mcqOptions":[{"text":"

The factor is outside control.
The response can still be changed.

","correct":true,"explanation":"A business cannot control an external threat itself, but it can adapt pricing, finance, operations or strategy to reduce the threat’s impact."},{"text":"

The factor can always be controlled.
The response cannot be changed.

","correct":false,"explanation":"This reverses the controllability distinction. The external factor is outside the business’s control, but managers can change their response to reduce its impact."},{"text":"

The factor will soon disappear.
The response is therefore unnecessary.

","correct":false,"explanation":"There is no guarantee that an external threat will disappear, and ignoring it increases risk. The factor is uncontrollable, but the business can alter its response."},{"text":"

The factor is actually internal.
The response can be ignored.

","correct":false,"explanation":"A threat is external by definition, and ignoring it does not make it avoidable. The business cannot control the factor, but it can change its response."}]},{"id":"fc7e14b3-a569-4fdb-99d4-8ff32d35372b","cardType":"basic","points":1,"front":"What must be set first when building a useful SWOT?","back":"The objective.","mcqOptions":[{"text":"The objective.","correct":true,"explanation":"SWOT factors can only be judged as helpful or harmful in relation to a defined objective, so the objective must be established first."},{"text":"The budget.","correct":false,"explanation":"A budget may constrain strategic choices, but it does not provide the basis for classifying SWOT factors. The objective must be set first."},{"text":"The action plan.","correct":false,"explanation":"An action plan should follow the analysis because it explains how the business will respond. The objective must first provide the focus for SWOT."},{"text":"The final strategy.","correct":false,"explanation":"SWOT evidence helps managers develop or evaluate strategy, so the final strategy should not be fixed beforehand. The objective must be established first."}]},{"id":"f2d4c947-f1d9-4ddb-8b99-3bc850cd7134","cardType":"basic","points":1,"front":"Which external analysis can support SWOT by scanning political, economic, social, technological, legal and environmental factors?","back":"PESTLE.","mcqOptions":[{"text":"PESTLE.","correct":true,"explanation":"PESTLE systematically scans political, economic, social, technological, legal and environmental influences, providing external evidence for opportunities and threats in SWOT."},{"text":"Ansoff.","correct":false,"explanation":"Ansoff analyses growth options using products and markets rather than the wider external environment. PESTLE scans the six listed categories and supports SWOT."},{"text":"Boston Matrix.","correct":false,"explanation":"The Boston Matrix assesses products using market growth and relative market share. PESTLE is the framework that scans the six listed external categories."},{"text":"Porter’s Five Forces.","correct":false,"explanation":"Porter’s Five Forces examines competitive pressures within an industry, not all six macro-environmental categories. PESTLE provides the specified external scan."}]},{"id":"7fe75847-f8e2-405c-91d1-0914acc276d3","cardType":"cloze","points":null,"front":"A strong SWOT is [ ], [ ] and linked to strategy.","back":"A strong SWOT is evidence-based, prioritised and linked to strategy.","mcqOptions":[{"text":"A strong SWOT is evidence-based, prioritised and linked to strategy.","correct":true,"explanation":"Reliable evidence reduces unsupported judgement, while prioritisation focuses attention on the factors with the greatest strategic importance and likely impact."},{"text":"A strong SWOT is opinion-based, prioritised and linked to strategy.","correct":false,"explanation":"Relying on opinion makes the analysis subjective and potentially biased. A strong SWOT should be evidence-based as well as prioritised and linked to strategy."},{"text":"A strong SWOT is evidence-based, unprioritised and linked to strategy.","correct":false,"explanation":"An unprioritised list treats minor and major factors alike, limiting its usefulness. A strong SWOT should be evidence-based, prioritised and linked to strategy."},{"text":"A strong SWOT is assumption-based, unprioritised and linked to strategy.","correct":false,"explanation":"Unsupported assumptions weaken reliability, while failing to prioritise obscures the most important issues. A strong SWOT should be evidence-based and prioritised."}]},{"id":"5e2100f1-963c-42fb-b290-e68f8ffb88d2","cardType":"basic","points":2,"front":"What two questions classify any SWOT factor?","back":"

Is it internal or external?
Is it helpful or harmful for the objective?

","mcqOptions":[{"text":"

Is it internal or external?
Is it helpful or harmful for the objective?

","correct":true,"explanation":"The first question separates strengths and weaknesses from opportunities and threats. The second determines whether the factor supports or obstructs the chosen objective."},{"text":"

Is it financial or non-financial?
Is it certain or uncertain for the objective?

","correct":false,"explanation":"These distinctions may help evaluate a factor but do not place it in a SWOT category. Classification requires internal or external, then helpful or harmful."},{"text":"

Is it short-term or long-term?
Is it quantitative or qualitative for the objective?

","correct":false,"explanation":"Time horizon and data type can add detail but do not determine a SWOT quadrant. The required questions concern source and effect: internal or external, helpful or harmful."},{"text":"

Is it strategic or operational?
Is it urgent or non-urgent for the objective?

","correct":false,"explanation":"Strategic importance and urgency can support prioritisation after classification. A factor enters SWOT by being identified as internal or external and helpful or harmful."}]},{"id":"7c8be47e-9e9b-4bcb-b2ab-c8868dfd05f5","cardType":"basic","points":2,"front":"Why is Tesco’s large UK store network a strength when defending market share?","back":"Internal store estate helps convenience, delivery coverage and visibility.","mcqOptions":[{"text":"Internal store estate helps convenience, delivery coverage and visibility.","correct":true,"explanation":"Tesco controls its store estate, making it an internal strength. Its widespread locations improve customer convenience, support delivery coverage and maintain strong visibility across the UK."},{"text":"Internal store estate raises fixed costs, maintenance spending and closure risks.","correct":false,"explanation":"Higher fixed costs and closure risks describe potential weaknesses of owning many stores, not why the network is a strength. Its convenience, delivery coverage and visibility help defend market share."},{"text":"External market growth guarantees convenience, delivery coverage and visibility.","correct":false,"explanation":"Market growth is an external opportunity rather than part of Tesco’s internal store network, and it cannot guarantee these benefits. Tesco’s own estate provides convenience, delivery coverage and visibility."},{"text":"Internal store estate removes price competition, planning limits and delivery costs.","correct":false,"explanation":"A large store estate does not eliminate competitors, planning restrictions or delivery costs. Its genuine strength is providing convenient locations, broad delivery coverage and continued brand visibility."}]},{"id":"1554386b-361d-4f92-b4d3-a87da7b3d81e","cardType":"basic","points":3,"front":"Why can Tesco’s cost-of-living squeeze be both a threat and an opportunity?","back":"

Threat: reduces spending on premium products.
Opportunity: increases demand for value ranges.

","mcqOptions":[{"text":"

Threat: reduces spending on premium products.
Opportunity: increases demand for value ranges.

","correct":true,"explanation":"Reduced household purchasing power can lower sales of Tesco’s premium products, creating a threat. The same pressure can increase demand for its value ranges, creating an opportunity."},{"text":"

Threat: increases demand for value ranges.
Opportunity: reduces spending on premium products.

","correct":false,"explanation":"The effects have been classified in reverse. Lower premium spending threatens Tesco’s sales mix, whereas stronger demand for value ranges creates an opportunity to attract price-conscious customers."},{"text":"

Threat: increases household disposable income.
Opportunity: increases demand for premium products.

","correct":false,"explanation":"A cost-of-living squeeze reduces rather than increases disposable income and generally weakens premium demand. The threat is lower premium spending, while increased value-range demand is the opportunity."},{"text":"

Threat: lowers Tesco’s operating costs.
Opportunity: removes price competition.

","correct":false,"explanation":"Pressure on household budgets does not automatically lower Tesco’s operating costs or remove price competition. It threatens premium sales but offers growth through greater demand for value ranges."}]},{"id":"6f8cc3b7-2943-427c-85cb-40e56bb089ea","cardType":"cloze","points":null,"front":"SWOT can use strengths to [ ] or [ ].","back":"SWOT can use strengths to exploit opportunities or defend against threats.","mcqOptions":[{"text":"SWOT can use strengths to exploit opportunities or defend against threats.","correct":true,"explanation":"A business can apply an internal strength to take advantage of a favourable external opportunity or reduce its exposure to an unfavourable external threat."},{"text":"SWOT can use strengths to exploit threats or defend against threats.","correct":false,"explanation":"Threats are adverse external developments, so exploiting them is not the intended strategy. Strengths should exploit favourable opportunities and help defend the business against threats."},{"text":"SWOT can use strengths to exploit opportunities or defend against opportunities.","correct":false,"explanation":"Opportunities are favourable external conditions to exploit, not dangers requiring defence. Strengths should be used to exploit opportunities and defend against threats."},{"text":"SWOT can use strengths to avoid opportunities or intensify threats.","correct":false,"explanation":"Avoiding favourable opportunities wastes potential benefits, while intensifying threats increases risk. Effective SWOT uses strengths to exploit opportunities and defend against threats."}]},{"id":"acdc3806-9693-4884-82c9-20b0066a54a7","cardType":"basic","points":2,"front":"Why should a useful SWOT be prioritised rather than a long dump of factors?","back":"Important factors affect objectives more than list length.","mcqOptions":[{"text":"Important factors affect objectives more than list length.","correct":true,"explanation":"Prioritisation focuses managers on factors with the greatest effect on strategic objectives. Merely adding more minor points makes the SWOT longer without making it more useful."},{"text":"All listed factors affect objectives equally regardless of significance.","correct":false,"explanation":"SWOT factors differ greatly in strategic importance, so treating every item equally can divert attention from major issues. Important factors should be prioritised by their effect on objectives."},{"text":"Longer lists improve decisions more than relevance or evidence.","correct":false,"explanation":"This confuses quantity with analytical quality. A long list can contain irrelevant points, whereas prioritising well-supported factors reveals which issues most strongly affect business objectives."},{"text":"Minor factors affect objectives more than strategic priorities.","correct":false,"explanation":"Minor factors have less strategic influence than major priorities, so focusing on them can misdirect management attention. A useful SWOT prioritises important factors affecting objectives."}]},{"id":"d42e96da-583f-4a47-9d96-1d6c4f45a559","cardType":"basic","points":2,"front":"Why can vague SWOT points mislead managers?","back":"They do not show how the factor affects performance.","mcqOptions":[{"text":"They do not show how the factor affects performance.","correct":true,"explanation":"A vague label does not explain the causal link between a factor and outcomes such as sales, costs or market share. Managers therefore cannot judge its strategic significance reliably."},{"text":"They always show exactly how performance will improve.","correct":false,"explanation":"Vague points lack precision rather than predicting improvement accurately. They mislead because they fail to explain how the stated factor will affect business performance."},{"text":"They make managers consider only measurable financial data.","correct":false,"explanation":"Vagueness does not force managers to use only financial measures; vague statements may be financial or non-financial. The problem is their failure to show effects on performance."},{"text":"They automatically turn external threats into internal weaknesses.","correct":false,"explanation":"Writing a vague point does not change an external threat into an internal weakness. It misleads because the connection between the factor and business performance remains unexplained."}]},{"id":"a4c3e6a6-b2a3-43b0-85cc-0ee48adde6a6","cardType":"basic","points":2,"front":"Why can SWOT be subjective?","back":"

Managers may overstate strengths.
Managers may ignore weaknesses or threats.

","mcqOptions":[{"text":"

Managers may overstate strengths.
Managers may ignore weaknesses or threats.

","correct":true,"explanation":"Managers’ personal interests and optimism can influence how they assess evidence. They may exaggerate favourable internal features while overlooking unfavourable weaknesses or external threats."},{"text":"

Managers must follow fixed accounting rules.
Managers must produce identical conclusions.

","correct":false,"explanation":"Fixed rules and identical conclusions would reduce subjectivity rather than cause it. SWOT is subjective because managers may overstate strengths and overlook weaknesses or threats."},{"text":"

Managers may measure every factor precisely.
Managers may verify every judgement independently.

","correct":false,"explanation":"Precise measurement and independent verification would make analysis more objective. Subjectivity instead arises when managers exaggerate strengths or ignore unfavourable weaknesses and threats."},{"text":"

Managers may use one compulsory data set.
Managers may apply one standard weighting.

","correct":false,"explanation":"A compulsory data set and standard weighting would limit personal interpretation rather than create it. SWOT becomes subjective when managerial bias affects which factors are included and emphasised."}]}]}],"examCountdown":{"examDate":"2027-05-13","paperLabel":"Paper 1"},"heading":"SWOT analysis","title":"SWOT analysis Flashcards","topbar":{"backHref":"/a-level/business/edexcel/flashcards"},"topicSidebar":"$L38"}]}],"topicId":"14182476-c896-52bc-87d2-3cf8f113ea63","walled":"$L39"}],"$L3a","$L3b"]