(Allow 5 minutes)
A framework is a tool which has a particular purpose in a business context. Here is a reminder of the nature and purpose of the SWOT framework.
The SWOT framework includes the key concepts of strengths, weaknesses, opportunities and threats. It is commonly used to get an overview of how well a business is functioning at a particular point in time by categorising the internal and external factors influencing a business.
A SWOT analysis can be used in workplace contexts and in business studies. In the workplace, it can inform action, strategy and continuous business improvement, and in the study of business, it is used to frame a case study.
Using SWOT to analyse a business situation presented in a case study involves studying the information in the case study closely and identifying the strengths, weaknesses, opportunities and threats mentioned. These points are then categorised in note form into the appropriate sections of a SWOT table. A SWOT table looks like Table 5.1 (usually without the headings ‘Internal factors’ and ‘External factors’).
| Internal factors | |
|---|---|
|
Strengths
|
Weaknesses
|
| External factors | |
|
Opportunities
|
Threats
|
Note that the categories ‘Strengths’ and ‘Weaknesses’ refer to internal factors affecting a business, while ‘Opportunities’ and ‘Threats’ refer to external factors affecting a business.
Internal factors might be the implementation of a new brand bringing changes, an increase in staffing (strengths) or lack of good training (a weakness). These can be controlled by the business itself.
External factors are things outside a business which affect it, such as rising oil prices, a new product from a competitor in the market or new tax laws. These are out of the control of the business and the business needs to respond to them.
Once the SWOT table has been completed, the information in it can then be used to write a case study analysis and make recommendations.
This information on key concepts and frameworks is also included in Book 1: Handbook for Business Communication. Using key concepts and frameworks to analyse a case study enables you to:
Key concepts are words or phrases that have a particular meaning in a business context. For example, external environment as a key concept has a special meaning in business and management. It refers to factors that affect a business, such as economic and political factors.
Key concepts and frameworks are important to the study of business because using them allows you to give a clearer and more precise explanation of what is going on in a case study and make recommendations using vocabulary that is more abstract, therefore more academic. It is important to learn the key concepts that you come across in your study of business and management by noting them down along with a definition of their specialised meaning.