In SWOT analysis, which of the following defines factors the business cannot control?

Prepare for the PGA Level 1 Business Planning Test. Use flashcards and multiple-choice questions with hints and explanations. Get ready to achieve your goals!

In the context of SWOT analysis, threats refer to external factors that could potentially harm the business or impede its progress. These factors originate from outside the organization and are often beyond the control of the business itself. Examples of threats can include market competition, changes in regulations, economic downturns, and shifts in consumer preferences.

Understanding threats is crucial because it allows businesses to strategize effectively and develop contingency plans to mitigate potential negative impacts. By identifying these external challenges, a business can better position itself to navigate uncertainties while focusing on leveraging its strengths and addressing its weaknesses. This comprehensive perspective of the internal and external environment aids in informed decision-making and strategic planning.

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