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CSEET · Economic and Business Environment · Business Environment

Which of the following is a recognised limitation of SWOT analysis as a tool of environmental appraisal?

A recognised limitation is that SWOT can oversimplify complex situations and offers a static snapshot without weighting factors by importance. It does cover external factors, any organisation can use it, and no law prohibits it in strategic planning.

  1. AIt cannot consider external factors at all
  2. BIt can only be used by listed companies
  3. CIt may oversimplify complex situations and gives a static picture without ranking factors by importanceCorrect
  4. DIt is legally prohibited for use in strategic planning

Explanation

SWOT considers both internal and external factors and can be used by any organisation. Its weaknesses are that it lists factors without weighting them, can oversimplify, and reflects a point in time, so conditions may change.

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