SWOT and PESTLE are two of the most common frameworks set in business, marketing and management modules — and two of the easiest to get only average marks on. Most weak answers are lists. Strong answers use evidence, prioritise, and explain so what? for the organisation. This guide shows what belongs in each framework, how to connect them, and how to turn them into recommendations.
Description vs analysis: what markers are looking for
Writing "Brexit is a political factor" is description. Analysis explains how a factor affects this organisation, how strongly, and what it should do about it. Across UK, Australian and Canadian business schools, higher grade bands typically reward evidence, evaluation and justified recommendations over coverage.
PESTLE: analysing the external environment
| Factor | What belongs here | Where to find evidence |
|---|---|---|
| Political | Government policy, trade rules, tax policy, political stability | Government publications, policy announcements |
| Economic | Inflation, interest rates, exchange rates, consumer spending, wages | Central bank reports; ONS (UK), ABS (Australia), Statistics Canada |
| Social | Demographics, lifestyle trends, attitudes, education | National statistics, market research reports |
| Technological | Automation, digital channels, new products, R&D | Industry reports, company annual reports |
| Legal | Employment, consumer, competition and data protection law | Legislation, regulator guidance |
| Environmental | Climate risk, sustainability expectations, emissions rules | Regulator publications, company sustainability reports |
Keep PESTLE external: anything the organisation controls (its pricing, staff or systems) belongs in SWOT strengths or weaknesses instead.
SWOT: internal and external together
| Helpful | Harmful | |
|---|---|---|
| Internal (the organisation controls it) | Strengths — resources, capabilities, brand, processes | Weaknesses — gaps in resources, skills, cost position |
| External (the environment) | Opportunities — trends the organisation could exploit | Threats — trends or rivals that could harm it |
Adding industry analysis: Porter's Five Forces
PESTLE covers the macro environment; Porter's Five Forces covers competition within the industry. Used together, they give your SWOT opportunities and threats a much stronger evidence base.
| Force | Question to answer |
|---|---|
| Rivalry among existing competitors | How intense is competition on price, product and service? |
| Threat of new entrants | How easy is it for new firms to enter — capital needs, regulation, brand loyalty? |
| Bargaining power of suppliers | Can suppliers raise prices or restrict supply? |
| Bargaining power of buyers | Can customers push prices down or switch easily? |
| Threat of substitutes | What alternative products or services meet the same need? |
Step-by-step method
- Read the brief and the rubric. Note the organisation, the market, the time frame and how many words the analysis section carries.
- Run PESTLE first, using dated evidence for each factor you include.
- Add industry-level forces if the brief allows — Porter's Five Forces helps identify competitive threats.
- Build the SWOT. Internal points from the case study and company data; opportunities and threats from your PESTLE and industry analysis.
- Prioritise. Rank items by impact and likelihood rather than listing everything.
- Convert to strategy with TOWS and finish with justified recommendations.
Worked example: a fictional UK café chain
Harbourline Coffee is a fictional company used only to illustrate the method.
| Quadrant | Point | Why it matters (the 'so what') |
|---|---|---|
| Strength | Loyal customer base in coastal towns with a strong app-based loyalty scheme | Gives first-party data to test new menu items cheaply |
| Weakness | Higher cost per cup than national chains | Limits ability to compete on price if spending tightens |
| Opportunity | Growing demand for plant-based and lower-sugar options (social trend) | Product extension that fits the existing brand |
| Threat | Rising energy and wage costs (economic factor) | Squeezes margins; may force price rises |
Notice that every point is specific to the company and paired with its implication — that is what moves an answer from description to analysis.
Turning SWOT into strategy: the TOWS matrix
- SO (maxi–maxi): use strengths to exploit opportunities — e.g. trial plant-based products through the loyalty app.
- WO (mini–maxi): fix weaknesses by using opportunities — e.g. use supplier partnerships to bring unit costs down.
- ST (maxi–mini): use strengths to reduce threats — e.g. reward loyal customers to protect volume through price rises.
- WT (mini–mini): defensive moves — e.g. review loss-making sites.
Presenting your analysis
- Tables for the frameworks, prose for the analysis. A SWOT grid is easy to scan, but the marks sit in the paragraphs that interpret it.
- Check whether tables count towards the word limit — some modules exclude them, others do not.
- Cite inside the analysis, not only in a reference list — each factor should point to its source.
- Use appendices sparingly for supporting data; markers may not read material placed only there.
Common mistakes
- Lists with no evidence or dates — markers want sources, ideally recent ones.
- Putting strategies ("launch a new app") in the opportunities box — opportunities are external conditions, not actions.
- Mixing internal and external factors.
- Generic points that would fit any company.
- No prioritisation and no conclusion — always end with what the organisation should do.
- Uncited data — reference statistics and reports in your required style, usually Harvard.
For structuring the full submission, see how to write a case study and how to write an academic report.
Frequently Asked Questions
What is the difference between SWOT and PESTLE?
PESTLE looks only at the external environment: political, economic, social, technological, legal and environmental factors. SWOT covers both the organisation's internal strengths and weaknesses and its external opportunities and threats. PESTLE findings usually feed the opportunities and threats in a SWOT.
Should PESTLE come before SWOT in an assignment?
Usually, yes. Analysing the external environment first gives you evidence for the opportunities and threats quadrant, so your SWOT is grounded rather than generic.
How many points should each SWOT quadrant have?
There is no fixed number. Three to five well-evidenced, prioritised points per quadrant are more convincing than long lists. Markers reward relevance, evidence and implications rather than volume.
What is a TOWS matrix?
TOWS pairs the SWOT quadrants to generate strategies: strengths with opportunities (SO), weaknesses with opportunities (WO), strengths with threats (ST), and weaknesses with threats (WT). It turns description into strategic recommendations.
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