What does SWOT analysis involve?

SWOT analysis is a strategic planning tool that helps organizations identify and analyze their internal strengths and weaknesses, as well as external opportunities and threats. This multifaceted approach encourages organizations to reflect on their current abilities while also considering external factors that could impact their success. By doing so, organizations can develop strategies that capitalize on their strengths, address their weaknesses, exploit opportunities, and mitigate potential threats.

The structure of SWOT allows for a comprehensive evaluation that is essential for effective decision-making and strategic planning. It involves collaboration among team members to gather diverse insights, leading to a holistic understanding of the organization’s position within its market. This collaborative approach also assists in identifying areas for improvement and growth.

While the other options suggest different methods or focuses that do not align with the intended purpose of SWOT analysis, understanding the complete context — internal factors combined with external challenges and prospects — is crucial for a valid and effective strategic assessment.