SWOT analysis
A) is a way to measure whether a company's value chain is longer or shorter than the chains of key rivals.
B) is a tool for benchmarking whether a firm's strategy is closely matched to industry key success factors.
C) reveals whether a company is competitively stronger than its closest rivals.
D) provides a good overview of whether a company's situation is fundamentally healthy or unhealthy.
E) identifies the reasons why a company's strategy is or is not working very well.

Question

Quizplus · Accepted Answer

SWOT analysis provides a comprehensive overview of a company's situation by examining its strengths, weaknesses, opportunities, and threats. It helps to identify whether a company's position is fundamentally healthy or unhealthy. Options A and B are incorrect as SWOT analysis does not measure the length of a company's value chain or benchmark its strategy against industry key success factors. Option C is also not entirely accurate as SWOT analysis does not reveal whether a company is competitively stronger than its closest rivals, but rather it helps to reveal its competitive position. Option E is partially correct but too narrow, as SWOT analysis identifies factors that contribute to a company's strategic effectiveness beyond just whether the strategy is working or not.

SWOT Analysis