CMQ-OE practice question 14 of 35

A SWOT analysis should he performed when a company is

Full set: 348 questions
Answer options
A: developing its strategic objectives Correct answer
B: Starting the strategic planning process
C: identifying appropriate tactics for implementing the strategic plan
D: selling management on a new product line
Correct Answer:
A. developing its strategic objectives
Explanation

A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a foundational strategic planning tool. Its primary purpose is to assess an organization's internal capabilities (Strengths, Weaknesses) and external environment (Opportunities, Threats). The insights gained from this analysis are then used directly to formulate realistic, achievable, and relevant strategic objectives. For example, an objective might be created to leverage an internal strength to capitalize on an external opportunity. While performed early in the strategic planning process, its most direct output is the set of objectives that will guide the organization's strategy.

Why Incorrect

B. While SWOT is done at the beginning of the process, its direct purpose is to inform the next step, which is setting objectives, making A more specific.
C. Tactics are specific actions to implement a strategy. SWOT analysis occurs at a much higher level, before tactical planning begins.
D. A SWOT analysis could support a business case for a new product, but its primary application is for broader organizational strategic planning.

References

1. Russell, J. P. (Ed.). (2014). The ASQ Certified Manager of Quality/Organizational Excellence Handbook (4th ed.). ASQ Quality Press. Part III, Section A, "Strategic Plan Development," details how SWOT analysis is a key input for developing strategic objectives.

2. Wheelen, T. L., & Hunger, J. D. (2011). Concepts in Strategic Management and Business Policy: Toward Global Sustainability (13th ed.). Prentice Hall. Chapter 4, "Environmental Scanning and Industry Analysis," and Chapter 5, "Internal Scanning: Organizational Analysis," describe how SWOT analysis synthesizes this information to generate strategic factors which are inputs to strategy formulation (objective setting).

3. MIT Sloan School of Management. (2003). 15.965 Strategic Management of Technology and Innovation, Lecture Notes. MIT OpenCourseWare. The course materials position SWOT analysis as a critical step for situation analysis that precedes and informs the setting of strategic goals and objectives.

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