Managerial Economicsbasic
In the note's SWOT framework, strengths and weaknesses are generally _____ factors, while opportunities and threats are generally _____ factors.
Answer
internal; external
Explanation
### Why this is right
Strengths and weaknesses arise from factors within the organization's control, so they are internal. Opportunities and threats arise from outside the organization, so they are external.
### The concept
The note connects internal factors with an organization's strengths and weaknesses, and external factors with opportunities and threats. These categories help managers examine how the organization relates to its environment. A factor's classification depends on whether it is within the organization's control, not simply whether it has a positive or negative effect.
### Terms
- **SWOT**: strengths, weaknesses, opportunities, and threats, a framework for classifying organizational conditions.
- **Endogenous**: originating within the organization or system.
- **Exogenous**: originating outside the organization or system.
### Remember
Internal describes where a factor originates, not whether it is beneficial.
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