A SWOT analysis is a strategy tool that can be used for all businesses and individuals personally.O TrueO False

SWOT Analysis SWOT is the abbreviation of strength, weakness, opportunity, and threat. This…

Answered: A SWOT analysis is a strategy tool that…

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Step 1

SWOT Analysis

SWOT is the abbreviation of strength, weakness, opportunity, and threat. This analysis helps the organization know what its strengths and opportunities are and this helps them plan for such opportunities while being aware of the weaknesses and threats that they may face.
This is an incredibly useful analysis as it allows the management to evaluate the business from from different perspectives and discover new opportunities, strengthen their strengths, find out new weaknesses, and strive to fix them and find new threats due to continuous development.
The abbreviation "SWOT' can be broken down into two parts based on internal analysis and external analysis, i.e.,
- Strength and Weakness are the internal factors that the management can control. This is because this analysis highlights what the organization is good at and its USP as well as highlights all of the weak points of the organization. These analyses provide the management with a clear view on how to improve the organization and reach optimal success.
- Opportunities and Threats as the external factors are out of the control of the management. This is because opportunities are highlighted by market research and are the areas that the business can gain market share. Threats are external factors that will impact the organization negatively.