ITPEC FE Morning April 2020 Question 68
ITPEC FE Morning April 2020 — Question 68 of 80
SWOT Analysis: Internal vs External Factors — identify whether a factor is internal (Strengths/Weaknesses) or external (Opportunities/Threats).
SWOT analysis classifies factors along two dimensions:
- Internal (within the company's control): Strengths and Weaknesses
- External (outside the company's control): Opportunities and Threats
The question asks for an external factor related to company products. Only Opportunities and Threats are external.
Why not others:
- (a) "Strengths in product functions" is an internal Strength — it describes the company's own product capabilities
- (b) "Strengths in sales power" is an internal Strength — sales force is a company resource
- (d) "Weaknesses in product quality" is an internal Weakness — product quality is under the company's control
(c) "Threats by new entrants" is an external Threat — new competitors entering the market is an outside force the company cannot directly control.
Key rule: Strengths and Weaknesses = internal (about the company); Opportunities and Threats = external (about the environment).
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