The performance of any business is a result of the situation it finds itself in. An understanding of the current situation that leads to current performance is important in planning for business success. In doing this, we need to look at both internal and external factors. A useful tool to provide a focus for reviewing the situation is a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis.

Strengths and weaknesses are internal factors, the intrinsic nature of the business. These might include the premises, the position of the pharmacy, the skills mix of the staff, the competence of the staff and relationships with local GPs. It might also include strengths in terms of performance in different areas of the business.

External factors are opportunities and threats: things that are going on outside the business. These might include local competition, services commissioned locally, changes to local doctors or within the NHS, or changes to local communities. Opportunities might also describe areas where the business is not succeeding at present. For example, if a pharmacy is undertaking only 100 MURs per year, the opportunity exists to deliver a further 300.