What is SWOT analysis primarily used for?

SWOT analysis is primarily used to analyze an organization's strengths and weaknesses, as well as its opportunities and threats. This strategic planning tool helps businesses assess their internal capabilities, such as resources, knowledge, and processes, alongside external factors that can influence their success in the market. By identifying strengths, organizations can leverage these advantages to achieve their goals, while recognizing weaknesses allows them to address and mitigate potential challenges.

The choice to analyze financial statements, as another option, is a more focused financial assessment, while establishing marketing objectives requires specific goals related to market target and positioning that go beyond the scope of a SWOT analysis. Evaluating employee performance is distinctly different, as it deals with individual contributions rather than the overall strategic position of the organization. Thus, while these other options have their significance, they do not encapsulate the comprehensive overview provided by a SWOT analysis that encompasses a broader organizational context.