ITPEC FE Morning October 2021 Question 66
Which of the following is a technique that is used to identify and evaluate the internal and external factors that are helpful or harmful to the objectives of business organizations or projects?
Explanation
SWOT analysis — it sorts factors on two axes: internal or external, and helpful or harmful to the objective.
The question names both axes, internal and external factors that are helpful or harmful, which is exactly the SWOT grid.
Answer (c)
Why not others:
- •(a) Five forces analysis — examines only the external competitive environment of an industry: rivals, new entrants, substitutes, buyers and suppliers
- •(b) PPM analysis — places businesses or products by market growth rate and relative market share to decide where to invest; it does not list strengths and weaknesses
- •(d) Value chain analysis — breaks the company's own activities into primary and support activities to see where value is added; internal only
Key rule: A technique that covers both the inside of the organisation and its environment, split into favourable and unfavourable, is SWOT; five forces looks only outside, value chain only inside.
Business Strategy Management · AI-written, may contain errors
This question comes from an official ITPEC past paper. ITPEC Practice is an independent study tool and is not affiliated with ITPEC. See the official FE past-paper collection or Report an issue.