📚 Learning Guide
SWOT Analysis
easy

In a SWOT analysis, which of the following best describes the role of identifying 'Threats'?

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Choose the Best Answer

A

Assessing competitive advantages over rivals

B

Understanding external challenges that could hinder progress

C

Recognizing internal limitations that need improvement

D

Exploring new market opportunities for growth

Understanding the Answer

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Answer

In a SWOT analysis, identifying Threats means looking at external dangers that could hurt the organization, such as new competitors, changing regulations, or economic downturns. This step helps you foresee what could go wrong and plan ways to avoid or lessen those problems. By spotting threats early, you can develop strategies to protect the business, like diversifying products or improving customer loyalty. For example, a coffee shop might see a threat from a new chain opening nearby and decide to focus on unique, locally sourced drinks to stay competitive.

Detailed Explanation

Threats are problems that come from outside the organization. Other options are incorrect because This option talks about internal strengths and how a company can beat competitors; This answer mentions internal weaknesses.

Key Concepts

SWOT Analysis
Strategic Planning
Business Growth
Topic

SWOT Analysis

Difficulty

easy level question

Cognitive Level

understand

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