Which of the following is true of SWOT analysis?
A) It is a tool used to formulate an organization's mission statement.
B) Broad environmental factors are those that are close to an organization.
C) An organization's strengths and weaknesses are identified by methodically assessing the organization's external environment.
D) It provides a general overview of whether the overall situation is healthy or unhealthy.
E) Broad environmental factors consist of stockholders, suppliers, competitors, labor unions, customers, and potential new entrants.

Question

Quizplus · Accepted Answer

SWOT analysis provides a general overview of whether the overall situation is healthy or unhealthy by evaluating an organization's internal strengths and weaknesses and external opportunities and threats. Option A is incorrect as SWOT analysis is not used to formulate an organization's mission statement, but it can help in developing strategies to achieve the mission. Option B is incorrect as broad environmental factors are those that are beyond an organization's control, such as political, economic, social, and technological factors. Option C is incorrect as an organization's strengths and weaknesses are identified by analyzing its internal environment, not external environment. Option E is incorrect as these are the specific groups or stakeholders in an organization's external environment, not broad environmental factors.

Which of the Following Is True of SWOT Analysis