A SWOT Analysis—the Acronym for Strengths, Weaknesses, Opportunities GMAT Reading Comprehension

Reading Passage Question

A SWOT analysis—the acronym for Strengths, Weaknesses, Opportunities, and Threats—is one way that businesses can identify opposition to a proposed venture or strategy, allowing professionals to identify many of the positive and negative elements that might affect the actions under consideration. The SWOT analysis is meant to be used during the proposal stage of strategic planning as an assessment technique, and over the past decade, it has been used successfully among so many businesses that most consider it to be an invaluable tool. The first two letters in the acronym refer to internal factors, describing the resources and experience that a company already possesses and include such things as the company’s available cash, facilities, and equipment, and even such intangibles as the company’s location and workplace ethos. Typically, when conducting a SWOT analysis, a business will attempt to pair its Strengths and Weaknesses with the second half of the acronym, Opportunities, and Threats. This component of the analysis concerns external forces and factors that impinge upon the proposed action, including marketing trends, shifts in technology, the demographics of the target audience, and the possibility of external funding sources such as state and local governments. While many critics of the SWOT analysis contend that it amounts to little more than filling in four columns on a whiteboard, the fact remains that without a full awareness of all the factors that might affect a proposal’s chances for success, a company is unlikely to succeed, and the SWOT analysis ensures that these factors are thoroughly explored in the critical period before a company begins committing resources to a project.

“A SWOT analysis—the acronym for Strengths, Weaknesses, Opportunities”- is a passage of GMAT reading comprehension with sets of answers. The candidates are required to gather a solid concept of English GMAT reading comprehension. There are six sets of questions in this passage of GMAT Reading Comprehension. GMAT Reading Comprehension questions are devised to check the candidates' efficiency to understand and analyse details or statements. The candidates can prepare themselves vigorously by practising GMAT Reading Comprehension Practice Questions.

Solutions and Explanation

1. According to the passage, which one of the following is a criticism that some have voiced about SWOT analysis?

1. Although SWOT is useful for analyzing the strengths of a plan, it often understates the weaknesses.
2. the SWOT system considers only internal factors and ignores external forces and factors.
3. Simply listing items beneath the four headings of SWOT provides a little tangible benefit.
4. A company that uses SWOT often must supplement the analysis with another method.
5. The focus on pairing strengths and weaknesses obscures possible external obstacles.

2. According to the passage, which of the following is a vital prerequisite for a proposed project's success?

1. A thorough examination of all the things that might impinge upon the proposed project
2. Developing a robust workplace ethos that will contribute positively to the project
3. Pairing the strengths and weaknesses of a proposal with its opportunities and threats
4. Using the SWOT analysis in a way that goes beyond listing items on a whiteboard
5. Comparing the demographics of the target audience with those targeted in previous proposals

3. The passage suggests that when evaluating a proposal it is not advisable for a company to

1. use a SWOT analysis without a full awareness of all of the method’s limitations.
2. target a specific audience before all marketing trends are taken into account.
3. use a whiteboard when implementing a SWOT analysis.
4. focus its attention solely on the resources it currently has at its disposal.
5. heed the objections of critics who have never used a SWOT analysis.

4. The author mentions the intangible factors primarily to

1. argue that it is these factors, rather than things such as cash, facilities, and equipment, which are most vital to a proposal’s success.
2. supplement the definition of the internal factors that might contribute or detract from a proposal’s success.
3. rebut the assertion of critics that the SWOT analysis is little more than a formal exercise.
4. address a potential weakness in the SWOT analysis by providing examples of its further application.
5. assist businesses in identifying opposition to proposed ventures.

5. The passage suggests which of the following concerning the timing of a SWOT analysis?

1. Internal factors should be weighed thoroughly before external factors are considered.
2. External funding sources should be considered before the company commits its own resources.
3. Using the analysis during the proposal stage is successful only if followed through to later stages.
4. Before the past decade, attempts to use SWOT was met with mixed success.
5. The analysis is best conducted before cash, facilities, or equipment are allocated to a project.

6. The primary purpose of the passage is to

1. enumerate reasons why the SWOT analysis is of limited value to most businesses.
2. identify a shortcoming in the position of critics who oppose the use of SWOT analysis.
3. provide empirical data to support a business practice that is frequently employed.
4. explain the nature of business practice and provide an indication of the reasons for its success.
5. attempt to provide a partial answer to a long-standing debate within the field of strategic planning.

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