Question

15. Which of the following is false regarding why a SWOT Analysis is used?
(A) To build on the strengths of a business
(B) To minimize the weaknesses of a business
(C) To reduce opportunities available to a business
(D) To counteract threats to a business

Answer 1

The following is regarding why a SWOT false analysis is used, [C] To reduce opportunities available to be a business.

• SWOT is the acronym for Strength Weakness Opportunity and Threat.
• The 'O' in SWOT  stands for the opportunity which means a firm should know about the opportunity about the intent as well as the external environment.
• A firm should be keen and observant and should be flexible and adapt to avail all the opportunities which would help them to create a strong a place in the market.

Answer 2

We need to find which of the following is false regarding SWOT analysis.

SWOT:

SWOT technique is an analysis of strengths, weaknesses, opportunities and threats.

A. To build on the strengths of a business.

By SWOT analysis, we list out all our strengths of the business. We can use our strengths to enhance our business.

Eg: A good team of employees, Trustworthy, Sophisticated technology etc can be business strengths.

Therefore, SWOT helps to build on the strengths of a business.

B. To minimize the weaknesses of a business.

By SWOT analysis we list out all our weaknesses. This helps us to understand the obstacles to business growth. Thereafter, we learn to handle those weaknesses.

Eg: Lack of motivation, Competition, Less investment etc.

Therefore, SWOT analysis minimize the weaknesses of a business.

C. To reduce the opportunities of a business.

Making best use of every opportunity is the secret of success. Sometimes, even if we have potential to do, we lose some opportunities. SWOT analysis helps us to identify every opportunity we have, by which we can make best use of those opportunities.

In the option it is given that SWOT analysis reduce the opportunities of a business which is incorrect.

Therefore, SWOT analysis don't reduce the opportunities of a business.

D. To counteract threats of business.

Using SWOT analysis, we list out all our threats of business. If we know our threats we can try to counteract them.

Eg: Competitors, Market entry and price etc can be business threats.

Therefore, using SWOT analysis we can counteract threats of business.

Answer:

Option C:

To reduce the opportunities of business

Option C is incorrect. It is a false statement regarding SWOT analysis.