Question

Business organisations use a certain technique to diagnose and analyse their micro and macro environment. Name and explain the technique.

Answer 1

SWOT Analysis:

S – Strength is the inherent capability of the informal organisation which gives the company a strategic advantage.

W – Weakness is the inherent limitation of a company which creates a strategic disadvantage for it.

O – Opportunity refers to favourable external factors that the company can exploit to gain strategic advantage.

T – Threat is an unfavourable environment which damages its position.