What role does SWOT analysis play in understanding the business environment?
Practice Questions
1 question
Q1
What role does SWOT analysis play in understanding the business environment?
Identifying only external threats
Assessing internal strengths and weaknesses along with external opportunities and threats
Focusing solely on financial metrics
Evaluating employee performance
SWOT analysis helps in assessing both internal strengths and weaknesses as well as external opportunities and threats in the business environment.
Questions & Step-by-step Solutions
1 item
Q
Q: What role does SWOT analysis play in understanding the business environment?
Solution: SWOT analysis helps in assessing both internal strengths and weaknesses as well as external opportunities and threats in the business environment.
Steps: 6
Step 1: Understand what SWOT stands for: Strengths, Weaknesses, Opportunities, and Threats.
Step 2: Identify internal factors: List the strengths and weaknesses of the business.
Step 3: Identify external factors: List the opportunities and threats in the market or industry.
Step 4: Analyze strengths: Determine how the strengths can be used to take advantage of opportunities.
Step 5: Analyze weaknesses: Consider how weaknesses might hinder the business from seizing opportunities or facing threats.
Step 6: Use the analysis: Combine all findings to create strategies that leverage strengths and opportunities while addressing weaknesses and threats.
