SWOT analysis

What is part of the SWOT acronym?

Threats

What is SWOT used for?

To determine business strengths To analyze threats to an organization

Low barriers to entry would be considered a(n)

opportunity

Increased competition would be considered a(n)

threat

In a SWOT analysis, __________ are external factors that will prevent you from making the most of your resources.

threats

In a SWOT analysis, __________ are internal factors that will prevent you from working at your optimal level.

weaknesses

AutoEdge is a leading national automotive supply company located in Detroit, Michigan. The company specializes in engines and transmission parts. It has been supplying parts to the three largest U.S. automakers for over 30 years. In 2005, the company decided to close all manufacturing in Detroit and move its operation to South Korea. This strategy proved to be successful for 5 years but, in 2010, the company was found guilty of supplying products that failed quality tests. As a result, millions of automobiles had to be recalled. You have been hired by the AutoEdge board of directors to assist them decide whether to stay in South Korea or return to the United States. As a first step, you have decided to conduct a SWOT analysis. What is an opportunity for AutoEdge?

Expanding global market

AutoEdge is a leading national automotive supply company located in Detroit, Michigan. The company specializes in engines and transmission parts. It has been supplying parts to the three largest U.S. automakers for over 30 years. In 2005, the company decided to close all manufacturing in Detroit and move its operation to South Korea. This strategy proved to be successful for 5 years but, in 2010, the company was found guilty of supplying products that failed quality tests. As a result, millions of automobiles had to be recalled. You have been hired by the AutoEdge Board of Directors to assist them decide whether to stay in South Korea or return to the United States. As a first step, you have decided to conduct a SWOT analysis. What is a weaknessof AutoEdge?

High recall rate

AutoEdge is a leading national automotive supply company located in Detroit, Michigan. The company specializes in engines and transmission parts. It has been supplying parts to the three largest U.S. automakers for over 30 years. In 2005, the company decided to close all manufacturing in Detroit and move its operation to South Korea. This strategy proved to be successful for 5 years but, in 2010, the company was found guilty of supplying products that failed quality tests. As a result, millions of automobiles had to be recalled. You have been hired by the AutoEdge Board of Directors to assist them decide whether to stay in South Korea or return to the United States. As a first step, you have decided to conduct a SWOT analysis. What is a strength of AutoEdge?

Its ability to deliver products on time

What is an example of a threat to an organization?

Low international tariffs

What is an example of a company's weaknesses?

Noncompetitive product