SWOT analysis is used to identify what aspects of a business?

SWOT analysis is a strategic planning tool used by businesses to identify internal and external factors that can affect their performance. The acronym stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths and weaknesses pertain to internal factors, helping a business understand what it does well and where it may need improvement. This internal analysis is crucial for leveraging strengths to gain competitive advantages and mitigating weaknesses to avoid potential pitfalls.

Opportunities and threats, on the other hand, focus on external factors. Opportunities refer to favorable conditions or trends in the environment that a business can capitalize on, while threats involve external challenges that could pose risks to the business’s success.

Therefore, this answer accurately captures the purpose of SWOT analysis, which is to provide a comprehensive view of both internal and external dynamics affecting a business. This understanding aids in strategic decision-making and helps organizations plan effectively for the future.