SWOT Analysis
•What does SWOT stand for?
Strengths, Weaknesses, Opportunities, Threats
What does the 'P' in PESTEL stand for?
Political
A small coffee shop opens next to a Starbucks. What is one strategy it could use to stay competitive?
Offer unique flavors, better customer service, or local branding
A company is struggling to cut costs. What’s one risk of laying off employees?
Loss of talent, lower morale, bad PR, or customer service issues
What should a company do if its main competitor lowers prices?
Adjust pricing, improve product quality, increase marketing
Give an example of a business strength.
Example: Strong brand reputation, efficient supply chain
Name an economic factor that affects businesses.
Example: Interest rates, inflation, unemployment rates
A company has a great product but no one knows about it. What should they do?
Invest in marketing, influencer partnerships, or social media ads
A fast-food restaurant wants to add healthier menu items. What is one challenge they might face?
Higher food costs, changing customer expectations, or branding confusion
How can a company react to a supplier raising prices?
Negotiate with suppliers, find alternative vendors
What’s a common business weakness?
Example: Poor financial management, lack of innovation
What sociocultural trend has changed the way people shop?
Example: Online shopping, sustainability trends
A clothing company wants to become more sustainable. What are two ways they could do this?
Use recycled materials, offer clothing buy-back programs, or reduce waste in production
A company can either expand quickly into 10 cities or test one city first. What is the safer choice and why?
Test one city first to reduce risk, learn from mistakes, and adjust
What should a business do when launching in a new country?
Conduct market research, localize products, partner with locals
Name one external opportunity that could help a company grow.
Example: Growing market demand, new technology
How does technology affect a company’s success?
Example: AI advancements, e-commerce growth
A gym has loyal customers but new competitors are opening nearby. How can they keep members from leaving?
Offer exclusive classes, personalized training, or loyalty rewards
A business has a popular product, but a competitor offers it cheaper. Should they lower their prices? Why or why not?
Not always—low prices can reduce profits, brand value, and quality perception
If a business runs out of cash, what is one option they have?
Secure a loan, attract investors, cut expenses
What external factor could be a threat to a small business?
Example: Economic recession, new competitors
Name an environmental factor that could hurt a business.
Example: Climate change regulations, resource scarcity
A new app is gaining millions of users but isn’t making money. What are two ways they could start generating revenue?
Add paid features, offer subscriptions, introduce ads, or sell user data ethically
A company wants to go fully online and close all physical stores. What is one big risk of this decision?
Losing in-person shoppers, higher return rates, or online competition challenges
What is the riskiest business decision an entrepreneur can make?
Starting a business with no backup financial plan