Future Business Leaders of America (FBLA) Business Management Practice Test

In a SWOT analysis, which aspects are considered by a manager?

1. Strengths only

2. Weaknesses only

3. Opportunities only

4. All of the above

The correct answer is: All of the above

In a SWOT analysis, managers evaluate all four components: strengths, weaknesses, opportunities, and threats. This comprehensive approach helps them understand both the internal and external factors affecting their organization. Strengths refer to the internal attributes or resources that give an organization a competitive advantage. Weaknesses are internal factors that could hinder an organization from performing at its best. Opportunities involve external conditions that the organization can exploit to its advantage, while threats are external challenges that could jeopardize the success of the business. By considering all four aspects, managers can develop strategies that leverage strengths, address weaknesses, capitalize on opportunities, and mitigate threats, leading to informed decision-making and strategic planning. This holistic view is essential for creating a balanced approach to analyzing a business’s position in the market.