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

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Get ready for the FBLA Business Management Test. Prepare with interactive flashcards and multiple choice questions, each designed with hints and explanations. Excel in your exam!

Practice this question and more.

To thoroughly understand a company's potential weaknesses, managers should conduct what type of analysis?

Market analysis
SWOT analysis
Competitive analysis
Financial analysis

The correct answer is: SWOT analysis

A SWOT analysis is a strategic planning tool that enables managers to identify and evaluate a company's Strengths, Weaknesses, Opportunities, and Threats. By focusing specifically on weaknesses, this type of analysis helps managers gain insights into areas that may hinder the company's performance or competitiveness. It provides a structured way to recognize internal challenges, such as resource limitations, operational inefficiencies, or gaps in skills or technology. While market, competitive, and financial analyses can provide valuable information about the external environment and the company's overall financial health, they do not focus specifically on internal weaknesses. Market analysis concentrates on understanding consumer demand and market conditions, competitive analysis looks at the strengths and strategies of rival companies, and financial analysis examines the company's financial performance and stability. Therefore, a SWOT analysis is the most comprehensive approach for identifying potential weaknesses within the organization itself.