Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Strengths refer to internal capabilities that can help achieve objectives.
B
Weaknesses are always permanent limitations that cannot be improved.
C
Opportunities are external factors that can be leveraged for growth.
D
Threats are only financial risks that a business may encounter.
E
A SWOT analysis should only be conducted once and not revisited.
Understanding the Answer
Let's break down why this is correct
Answer
A SWOT analysis has four parts: internal strengths and weaknesses, and external opportunities and threats. Strengths and weaknesses come from inside the organization, while opportunities and threats come from outside the organization. This mix lets a company see what it does well, what it struggles with, and what market forces it can use or must guard against. For example, a bakery might list its skilled bakers as a strength, its limited kitchen space as a weakness, rising flour prices as a threat, and a growing local demand for vegan pastries as an opportunity.
Detailed Explanation
Strengths are internal capabilities that help a company reach its goals. Other options are incorrect because Weaknesses are not fixed forever; many can be fixed or made less harmful; Threats include all kinds of dangers, not just money problems.
Key Concepts
SWOT Analysis
Strategic Planning
Risk Management
Topic
SWOT Analysis
Difficulty
medium level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
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Question 4Order the steps in conducting a SWOT analysis effectively.
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Question 7Which of the following statements accurately describe the components of a SWOT analysis? Select all that apply.
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Question 8In a SWOT analysis, which of the following best describes the role of identifying 'Threats'?
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Question 9Order the steps in conducting a SWOT analysis effectively.
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