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Swot-Differentiating internal and external

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Swot-Differentiating internal and external

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Ken Garrett.
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  • May 30, 2017 at 10:16 pm #389110
    td4mee
    Member
    • Topics: 5
    • Replies: 27
    • ☆

    So i have a question regarding the use of a SWOT analysis, i think we all know that SW are internal while OT are externals, however my question is in relation to what is the defining characteristics that differentiates internal and external.

    For instance, if there is a company that has positioned itself in an area where there is low labour costs, would this be an opportunity rather than a threat since this is indeed ‘outside’ of the company, or is it a strength because the benefit is intrinsic to its positioning.

    So ideally i just want to know how to tell the difference between what is internal and what is external.

    May 31, 2017 at 12:24 am #389116
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10197
    • ☆☆☆☆☆

    To some extent it doesn’t matter: availability of cheap labour has been identified as an important factor. That availability can be both regarded as a strength (eg sustaining low cost production) or an opportunity (eg allowing future production to make use of low costs).

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