Q1: Define SWOT Analysis with appropriate examples
SWOT analysis is a method used for strategic planning. It is very useful in evaluating various business situations. SWOT is abbreviation for: strengths, weaknesses, opportunities and threats. SWOT analysis offers an outline to assess a particular strategy of any business. It is simple to apply and is also useful while brainstorming where management needs to intensely study the requirements of the business; SWOT analysis offers the most appropriate way for that. (Hill, T. & R. Westbrook 1997).
SWOT Analysis Limitations
Although SWOT analysis is best for identifying different situations of business in more manageable way yet some limitations are also involved with this analysis. Main point of this analysis is that it oversimplifies the process to identifying strengths, weaknesses, opportunities and threats of a business venue. It may not always fit to each business needs assessment process. For example a particular company culture can be strength or weakness at the same time and technology innovation can be threat or opportunity in the same way. Then how a company management can consider it accurately what they should evaluate for their business development and long-term growth? (Hill, T. & R. Westbrook 1997).
SWOT Analysis Example: Restaurant Business
Strengths of restaurant business include:
* Restaurant client interface is organised, clean and tidy.
* You charge less cost than your competitors.
* You are serving the customers in an innovative style.
* Your business has branded image.
* Your choice of menu items is good than others.
* You have well-trained staff to serve the customers.
In the same way we can determine the weaknesses of a newly opened restaurant business that are:
* You have a new restaurant business not established.
* Your funds are limited to groom your business.
* You are offering same items already available in the market.
* You are not...