What does a SWOT analysis assess in a business context?

A SWOT analysis is a strategic planning tool that helps businesses assess their internal and external environments by evaluating four key components: strengths, weaknesses, opportunities, and threats.

Strengths refer to the internal attributes and resources that support a successful outcome, such as unique capabilities or competitive advantages. Weaknesses identify internal factors that might hinder performance or growth. Opportunities consider external factors that the organization could capitalize on to enhance its position or performance, while threats analyze external challenges that could undermine the business, such as competition or market changes.

By systematically examining these four aspects, businesses can develop strategies that leverage their strengths, address weaknesses, exploit opportunities, and mitigate threats. This holistic view aids in decision-making and strategic planning processes, ultimately guiding businesses towards improved performance and competitive advantages.

The other options focus on narrower aspects of market conditions or specific business practices, which do not encompass the comprehensive approach of a SWOT analysis.