Question

SWOT analysis is useful in part because it obliges the firm to act proactively by putting an emphasis on identifying opportunities and threats that constrain the action choices a firm might make because of its internal and external environmental scan.

Answer 1

Answer: True

Explanation:

SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis is very popular because even though it appears simple, it can have such a massive impact on a company because it alerts Management to opportunities that exist to take the firm forward.

It also speaks to the company on ways to converge strategies that aim to harness the strengths or weaknesses in a Firm's INTERNAL and EXTERNAL environment with the aformentioned OPPORTUNITIES and THREATS thereby leading to a COMPLETE decision making process and result that can serve to push the company to be Proactive in taking strides that will grow the company.

SWOT analysis is a pure example of, "Simplicity is the ultimate Sophistication".

Answer 2

Answer: True

Explanation:

The SWOT analysis is a study used by an organization to identify the organization's internal strengths, weaknesses, external opportunities and it's threats.

The SWOT analysis enables managers to consider both the internal and external factors and emphasis is laid on the identification of opportunities and threats which makes firms act in a proactively manner ather than reactively. It also raises awareness about the strategic roles in creating a match between the internal strengths, weaknesses of the firm and the environmental conditions.