$4\mathrm{.}6$ SWOT Analysis $139$

a well$-$established brand name and a simple business format that can easily be adapted to other cultures. In

considering the opportunities offered by overseas markets and Subway$$s strengths, it is not surprising that entering

and expanding in different countries has been a key element of Subway$$s strategy in recent years. Indeed, Subway

currently has operations in nearly $100$ nations.

China$$s huge population and growing wealth makes it an attractive opportunity for Subway and other American restaurant chains.

Johnathan $$ Nanjing Lu $$ CC BY$-$NC$-$ND $2\mathrm{.}0.$

SWOT analysis is helpful to executives, and it is used within most organizations. Important cautions need

to be offered about SWOT analysis, however. First, in laying out each of the four elements of SWOT, internal

and external factors should not be confused with each other. It is important not to list strengths as opportunities,

for example, if executives are to succeed at matching internal and external concerns during the idea generation

process. Second, opportunities should not be confused with strategic moves designed to capitalize on these

opportunities. In the case of Subway, it would be a mistake to list $$entering new countries$$ as an opportunity.

Instead, untapped markets are the opportunity presented to Subway, and entering those markets is a way for

Subway to exploit the opportunity. Finally, and perhaps most important, the results of SWOT analysis should not

be overemphasized. SWOT analysis is a relatively simple tool for understanding a firm$$s situation. As a result,

SWOT is best viewed as a brainstorming technique for generating creative ideas, not as a rigorous method for

selecting strategies. Thus the ideas produced by SWOT analysis offer a starting point for executives$$ efforts to

craft strategies for their organization, not an ending point.

In addition to organizations, individuals can benefit from applying SWOT analysis to their personal situation.

A college student who is approaching graduation, for example, could lay out her main strengths and weaknesses

and the opportunities and threats presented by the environment. Suppose, for instance, that this person enjoys

and is good at helping others $($a strength$)$ but also has a rather short attention span $($a weakness$).$ Meanwhile,

opportunities to work at a rehabilitation center or to pursue an advanced degree are available. Our hypothetical

student might be wise to pursue a job at the rehabilitation center $($where her strength at helping others would be

Which business$-$level strategy is most often associated with economies of scale?