📚 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 the skills and resources inside a company that help it reach its goals, while opportunities are outside chances that can be used to grow. Other options are incorrect because People think weaknesses are fixed and cannot change, but they can be fixed or reduced with effort; Threats are not only money problems; they can be new competitors, laws, or bad weather.

Key Concepts

SWOT Analysis
Strategic Planning
Risk Management
Topic

SWOT Analysis

Difficulty

medium level question

Cognitive Level

understand

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