The Main Problem of SWOT as a Framework for Strategy

question 9

Multiple Choice

The main problem of SWOT as a framework for strategy analysis is that:

• A)Distinguishing opportunities from threats and strengths from weaknesses is often difficult
• B)It has now been superseded by more sophisticated analytical frameworks
• C)It is focused on strategy formulation and fails to take account of strategy implementation
• D)It is so widely used that it no longer has any novelty.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation and a claim on part of the company’s profits.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders in the form of cash.

Operating Activities

Activities that relate directly to the primary business operations, including revenues and expenses, cash flows, and transactions.

Direct Method

A cash flow statement preparation approach that lists major payments and receipts of cash from operational activities directly.