QPractice question
Which of the following best describes SWOT Analysis?
  1. A.A 2x2 grid of internal Strengths and Weaknesses crossed with external Opportunities and Threats — used to frame strategic options before recommending action. ✓
  2. B.A 2x2 of relative market share against market growth, classifying business units as Stars, Cash Cows, Question Marks, or Dogs to guide portfolio investment.
  3. C.Michael Porter's framework for analyzing industry attractiveness across five competitive forces — rivalry, suppliers, buyers, new entrants, and substitutes.
  4. D.A 2x2 grid of internal Strengths and Weaknesses crossed with external Opportunities and Threats — used to frame strategic options before recommending action.
Why this answer:

SWOT Analysis is a 2x2 grid of internal Strengths and Weaknesses crossed with external Opportunities and Threats — used to frame strategic options before recommending action. The other options describe related but distinct concepts in Strategic Frameworks — see the deep-dive guide for the full distinction.

How to think about questions like this

Forces you to separate internal capabilities from external conditions before recommending action. Questions like this test whether you can distinguish SWOT Analysis from neighboring concepts. The most common trap is choosing a closely-related concept that sounds similar but applies in a different context.

When you see a definition question on an exam, do two things: (1) translate the question into your own words, then (2) generate the answer in your own words before reading the options. This avoids the cognitive bias of recognizing a familiar phrase as correct just because it is familiar.

Editor's note Want a deeper walkthrough? Our editors recommend pairing this with SWOT Analysis for a worked example you can adapt to your assignment.