Setting Clear Business Goals – SWOT Analysis JSS3 Business Studies Lesson Note

It is important that when setting up a business, the entrepreneur identifies the goals to be achieved. Thereafter he/she targets and works at achieving these business goals. Therefore, a business goal is a business objective or target to be achieved by a specific period. A business may fail if its goals are not identified at the initial stage.

SWOT ANALYSIS

SWOT analysis means the designed plan to find out the strengths, weaknesses, opportunities, and threats of a business. SWOT is an acronym for:

S- Strengths: Strengths refer to the internal characteristics of a business that give it an advantage over others. For example, sufficient capital, strategic business location, an effective and efficient workforce, and good customer relations can help a business venture achieve its goals.

W- Weaknesses: Weaknesses are the internal characteristics that put a business at a disadvantage in comparison to others. For instance, insufficient capital, low-standard products, poor marketing, poor customer service, absenteeism among workers, etc.

O- Opportunities: These are external factors or characteristics of a business environment that help the objectives of the business. Example provision of infrastructural facilities such as good roads, constant power supply, etc.

T- Threats: These are the external factors of a business environment that can have adverse effects on the business. Example: the enactment of a new law by the government, bad debt, etc.

SWOT analysis can be carried out for an enterprise, a product, an industry, or a venture. SWOT analysis should precede the setting of business goals as this will enable achievable goals and objectives to be set for the business.

EVALUATION

1. Define a business goal.
2. What is a SWOT analysis?

READING ASSIGNMENT

WABP Business Studies Book 3 Pages 54 to 63

GENERAL EVALUATION

1. What is a sole proprietorship?
2. Give three advantages and three disadvantages of a sole proprietorship.
3. State four other forms of business organizations that you know.
4. Who is an entrepreneur?
5. State four qualities of an entrepreneur.

WEEKEND ASSIGNMENT

1. The objective of a business that is to be achieved at a specific period is called—(a) business strategy (b) business purpose (c) business document (d) business map.
2. Before establishing a business venture, it is necessary to identify the goals of such a business. (a) Sometimes true (b) False (c) Always true (d) One cannot be sure
3. Who among the following should be the one to identify the business goals? The__ (a) receptionist (b) secretary (c) manager (d) entrepreneur
4. The following explains the acronym SWOT analysis except for

   (a) objectives (b) threat (c) strengths (d) weakness

5. Insufficient capital and poor customer service can be regarded as __ to a business. (a) threats (b) weaknesses (c) opportunities (d) strengths.

THEORY

1. What is a business goal?
2. Give the acronym of SWOT.
3. What is a SWOT analysis?