Question

Which of the following statements about the SWOT analysis is accurate?

1) SWOT analysis is a tool used to identify an organization's strengths, weaknesses, opportunities, and threats.
2) SWOT analysis is only used in the marketing department of an organization.
3) SWOT analysis is a tool used to analyze financial statements.
4) SWOT analysis is not a commonly used business tool.

Answer 1

The correct statement is that SWOT analysis is a tool used to identify an organization's strengths, weaknesses, opportunities, and threats, and it is utilized in various departments, not just marketing.

Step-by-step explanation:

The accurate statement about SWOT analysis is: 1) SWOT analysis is a tool used to identify an organization's strengths, weaknesses, opportunities, and threats. This strategic planning technique is used across various departments within an organization, not just the marketing department, to help with decision-making and strategic planning. While SWOT analysis does not directly analyze financial statements, the information gleaned may inform financial decision-making.

Despite its widespread use, it's noteworthy to mention that a SWOT analysis should be complemented with other tools and input, such as strengths-based management as described by Donald Clifton, which emphasizes maximizing an individual's strengths within an organization. Managers should be careful to not overemphasize strengths to the detriment of addressing weaknesses, as per Kaiser & Overfield's findings in 2011.