In: Finance
Which of the following is true with regard to a SWOT analysis?
It classifies SBUs into four distinct categories. | ||
It measures customer response to a new product. | ||
It evaluates the company's overall strengths. | ||
It evaluates the growth potential of a market segment. | ||
It ignores the threats faced by a company while assessing its situation in the market. |
The correct answer is :- It evaluates the company's overall strengths
Explanation : - SWOT analysis is a technique that evaluates the company's overall strengths, weaknesses, opportunities and threats. The strength's include resources present inside the company, patents etc. Weaknesses include poor internal processes, high employee turnover that could impede the growth of the company. Opportunities include factors in the external environment that the company could exploit to its advantage. Threats consists of challenges in the external environment that could deter the company's performance.