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strengths that should be exploited by suitable strategies (b)  The areas of the organisation that have  weaknesses



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F1 BPP ST(August 2020) [Unlocked by www.freemypdf.com] (1)

strengths
that should be exploited by suitable strategies
(b) 
The areas of the organisation that have 
weaknesses
which need strategies to improve them 
The strengths and weaknesses analysis is intended to shape the organisation's approach to the external 
world. For instance, the identification of shortcomings in products could lead to a programme of product 
development. 
11.1.2 External appraisal: opportunities and threats 
The external appraisal
 
identifies 
opportunities
that can be exploited by the organisation's strengths and 
also to anticipate environmental 
threats
against which the company must protect itself.
Opportunities 
(a) 
What opportunities exist in the business environment? 
(b) 
What is their inherent profit-making potential? 
(c) 
Can the organisation exploit the worthwhile opportunities? 
(d) 
What is the comparative capability profile of competitors? 
(e) 
What is the company's comparative performance potential in this field of opportunity? 
Threats 
(a) 
What threats might arise to the company or its business environment? 
(b) 
How will competitors be affected? 
(c) 
How will the company be affected? 
11.2 Using a SWOT analysis 
The SWOT analysis can be used in one of two ways. 
(a) 
The organisation can develop 
resource-based strategies
which enable the organisation to extend 
the use of its strengths. This is common in retailing, for example, as supermarket chains extend 
their own brands from food to other areas. 
(b) 
The business can develop 
positioning-based strategies
. In other words, identifying what 
opportunities are available and what the firm has to do exploit them. 
 

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