Module: General Practice
Q130: Consider the role of Environmental Scanning in the establishment phase:
Assertion (A): Before finalizing a product idea, an entrepreneur must conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats).
Reason (R): Environmental scanning helps identify external opportunities (like a new market gap) and threats (like changing regulations) that are beyond the entrepreneur's internal control.
Reason (R): Environmental scanning helps identify external opportunities (like a new market gap) and threats (like changing regulations) that are beyond the entrepreneur's internal control.
✅ Correct Answer: A
Correct Option: A. Concept: SWOT Analysis.
Logic: Assertion is True: A business does not exist in a vacuum.
Ignoring the environment leads to failure.
Reason is True: In SWOT, S & W are Internal (Controllable), while O & T are External (Uncontrollable). Scanning the environment allows the entrepreneur to spot a "Threat" (e.g., a ban on plastic) before investing money.
The Link: You do the analysis (Assertion) because you need to identify these uncontrollable external factors (Reason).
Logic: Assertion is True: A business does not exist in a vacuum.
Ignoring the environment leads to failure.
Reason is True: In SWOT, S & W are Internal (Controllable), while O & T are External (Uncontrollable). Scanning the environment allows the entrepreneur to spot a "Threat" (e.g., a ban on plastic) before investing money.
The Link: You do the analysis (Assertion) because you need to identify these uncontrollable external factors (Reason).