DECA+ Business Management and Administration 2025 – 400 Free Practice Questions to Pass the Exam

SWOT analysis is a strategic planning tool that evaluates an organization's internal strengths and weaknesses, as well as external opportunities and threats. This comprehensive assessment helps businesses understand their current position in the market and identify factors that may impact their growth or performance.

Strengths refer to the internal attributes and resources that support successful outcomes, such as a strong brand or skilled workforce. Weaknesses highlight areas for improvement or vulnerabilities, which could hinder performance. Opportunities are external factors that the organization can exploit for growth, such as emerging market trends. Threats encompass external challenges that could negatively affect the organization, like increased competition or regulatory changes.

This framework is highly valuable for strategic planning as it fosters a holistic view of the organization's environment, enabling informed decision-making that can leverage strengths, address weaknesses, capture opportunities, and mitigate threats. It is not specifically focused on financial performance, employee engagement, or marketing efficacy, making the correct choice stand out as the most comprehensive understanding of what SWOT analysis encompasses.