SWOT Analysis
Use SWOT analysis to identify internal strengths and weaknesses and external opportunities and threats for strategy, resources, risk and decision-making.
- Syllabus
- First assessment 2019
- Course
- Business XBS11/YBS11
- Level
- A2
Use SWOT analysis to identify internal strengths and weaknesses and external opportunities and threats for strategy, resources, risk and decision-making.
Extract A What we do at Bosch Bosch is a German engineering and technology business that has over 420,000 employees worldwide. Its aim is to develop products that are 'Invented for life' to improve the quality of living for its customers.
Bosch has a wide product portfolio. Its consumer goods division manufactures household goods such as refrigerators, dishwashers, coffee makers, vacuum cleaners and garden tools.
Bosch's mobility division supplies parts and services to the automotive market. This earns Bosch the majority of its revenue. It is a market leader in the supply of car parts and software systems and has numerous manufacturing and engineering factories located around the world. Bosch is increasing its investment in the design of parts and software systems for electric cars and electric bikes, which are growing markets.
Bosch has announced that €950m will be invested in an engineering and manufacturing factory in Suzhou, China. The factory will create new jobs to make parts for electric cars.
Extract B Bosch has exceeded its sales forecasts despite many challenges over the last few years such as the global health crisis, supply chain problems and increasing costs of raw materials.
Selected financial data for Bosch 2021 and 2022

Extract C Investment in innovation Bosch states that 'one of its biggest strengths is its employees with their expertise, ideas, creativity and commitment.'The basis of the future growth of the business is its innovation. In 2022 it employed 76,000 employees worldwide in research and development (R\&D) and spent €6bn developing new products.
Extract D Ownership of Bosch Unlike many large businesses, Bosch has remained a private limited company rather than converting to a public limited company. It has a unique form of ownership. Ownership is shared between the Bosch family and a charitable foundation that does not have voting rights in the business. Most of the profits are either invested back into the business to build for future growth or donated to charitable causes.
Assess the likely benefits for Bosch of using a SWOT analysis when developing its business strategy.
Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of the
points that candidates may make but this does not imply that any of these must
be included. Other relevant points must also be credited.
QS: QS8 and QS9
Knowledge, Application, Analysis, Evaluation - indicative content
- A SWOT analysis involves analysing the internal strengths and
weaknesses of a business and the external opportunities and threats
that it faces
- Strengths describe what the business excels at and what separates it
from competition
- A business strength of Bosch is its innovation which may allow it to
make advances in the manufacturing and technology market. This
may create a competitive advantage for Bosch
- Opportunities refer to favourable external factors that can be taken
advantage of to generate revenue and profits for a business
- The growth of the electric car market gives an opportunity to Bosch
to use its experienced employees and its leading position in the
market to profit from this growth
- Bosch faces threats from competition in the automotive supplier
market plus other threats from rising costs and supply chain
problems. Bosch must keep these threats in mind when making
strategic decisions
- However, categorising aspects as strengths, weaknesses,
opportunities and threats might be very subjective as there is a great
degree of uncertainty in the market especially with the recent global
health crisis
- SWOT analysis may have limited value to plan strategically. Bosch is
not in control of external factors such as material price increases and
supply chain delays which can have a significant impact on its
success
- Although opportunities of the growing electric car market can be
identified, Bosch may not have the necessary capital to take full
advantage of the opportunities
- The process needs to be repeated on a regular basis and is time
consuming. As Bosch operates in fast moving and dynamic markets,
the pace of the changes may make a SWOT analysis unfeasible
- A SWOT analysis is useful to provide an overview of a business but
should be used in conjunction with other strategic research tools,
such as a PESTLE analysis which looks closer at external influences
on a business
- There are other methods such as Ansoff and Porter's Strategic Matrix
which are used to assist with strategic decision making
- A combination of these models would help Bosch make decisions on
its future strategy
Level
Mark
Descriptor
0
No rewardable material.
Level 1
1-2
Isolated elements of knowledge and understanding - recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2
3-4
Elements of knowledge and understanding, which are applied to the
business example.
Chains of reasoning are presented, but may be assertions or
incomplete.
A generic or superficial assessment is presented.
Level 3
5-8
Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Analytical perspectives are presented, with developed chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative and/or
qualitative information though unlikely to show the significance of
competing arguments.
Level 4
9-12
Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s) and/or
effect(s).
Assessment is balanced, wide ranging and well contextualised, using
quantitative and/or qualitative information and shows an awareness of
competing arguments/factors leading to a supported judgement.