What does a SWOT analysis evaluate?

A SWOT analysis specifically evaluates the Strengths, Weaknesses, Opportunities, and Threats related to a business or project. This strategic planning tool helps organizations identify internal and external factors that can affect their operations and effectiveness.

Strengths refer to the internal attributes that contribute positively to the business, such as skilled personnel or strong brand recognition. Weaknesses are internal limitations or areas that require improvement, like insufficient resources or lack of expertise. Opportunities highlight external chances for growth or advantageous situations in the market, while Threats point to external challenges that could pose risks, such as competition or regulatory changes.

By analyzing these four components, businesses can formulate strategies that leverage strengths and opportunities while addressing weaknesses and mitigating threats. This insight is crucial for making informed decisions and guiding strategic planning. Other options provided focus on different analytical approaches unrelated to the comprehensive evaluation provided by a SWOT analysis.