ITPEC FE Morning October 2021 Question 66
ITPEC FE Morning October 2021 — Question 66 of 80
SWOT analysis is a 2×2 matrix that categorizes factors along two dimensions:
- •Internal: Strengths (helpful) and Weaknesses (harmful)
- •External: Opportunities (helpful) and Threats (harmful)
The question asks for a technique that evaluates both internal and external factors that are helpful or harmful — this maps directly to SWOT.
Why not others:
- (a) Five forces analysis — Michael Porter's framework for analyzing competitive forces in an industry (suppliers, buyers, substitutes, new entrants, rivalry). It focuses only on external competitive environment, not internal factors.
- (b) PPM analysis — Product Portfolio Management (e.g., BCG matrix) evaluates a company's product mix by growth rate and market share. It does not assess internal strengths/weaknesses.
- (d) Value chain analysis — breaks down a company's internal activities (inbound logistics, operations, marketing, etc.) to find where value is added. It focuses only on internal processes, not external factors.
Key rule: "Internal + external" and "helpful + harmful" → always SWOT.
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