📚 Learning Guide
SWOT Analysis
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Which of the following statements accurately describe the components of a SWOT analysis? Select all that apply.

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Choose 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

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