Essay on Swot Analysis : Swot And Pest Analysis

827 Words Dec 9th, 2015 4 Pages
This essay will demonstrate that SWOT and Pest analysis, in a business, are efficient tools if used with planning and the right level of business expertise. Firstly, this essay will introduce and define both SWOT and PEST analysis and describe how they are carried out. Secondly, it will explain when and why these tools are used, in business, using case studies. Finally, it will illustrate the advantages and disadvantages of using a SWOT and PEST analysis.
A SWOT analysis is an acronym for Strengths, Weaknesses, Opportunities and Threats. This tool takes into consideration both internal and external factors, strengths and weakness being internal and opportunities and threats being external. Strengths focus on success within the company and how to keep customers and employees satisfied and therefore strengths are the strongest attribute for a business (Razvonji, 2009). To have staff handling sales with a strong knowledge of the current product is considered a strength, in a business, as customers like to know a wide range of information before purchasing a product (Makos, n.d.).Weaknesses review areas, in the business, which need improving using the customer’s opinion and analysing competing companies (Razvonji, 2009). For example, if a company has outdated market research then their products will be behind in the market as customers are always looking for the latest products in the market. Not only will the company have too much stock but this will lead to a higher inventory…

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