ITPEC FE Morning October 2019 Question 68
ITPEC FE Morning October 2019 — Question 68 of 80
SWOT Analysis — Internal vs. External Factors — identify which SWOT category a given factor belongs to.
SWOT analysis classifies factors along two dimensions:
- •Internal (within the organization): Strengths and Weaknesses — things the company controls, such as cost structure, product quality, functional capabilities, and workforce skills.
- •External (outside the organization): Opportunities and Threats — things in the market or environment the company cannot directly control, such as new competitors, regulatory changes, or market trends.
"Threats owing to a new entry" describes a new competitor entering the market — a classic external threat.
Why not others:
- (a) Cost competitiveness — an internal factor (strength or weakness) about the company's own cost structure
- (b) Functional strengths — an internal strength describing the product's own capabilities
- (c) Quality-related weaknesses — an internal weakness about the product's own quality
Key rule: If the factor is about the company's own product/resources → internal (S or W). If it's about the market, competitors, or environment → external (O or T).
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