Which type of analysis identifies internal strengths and weaknesses as well as external opportunities and threats?

• A. PEST
• B. Market Analysis
• C. SWOT
• D. Force Field

Answer: (C)

The type of analysis that identifies internal strengths and weaknesses along with external opportunities and threats is known as SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. This analytical tool enables businesses to evaluate their internal capabilities and vulnerabilities while also assessing external factors that might affect their performance.

When conducting a SWOT analysis, organizations can systematically examine their internal strengths, such as unique resources or capabilities, and their weaknesses, like resource limitations or areas where they may be lacking. Simultaneously, they look at opportunities in the market, including trends or gaps that could be leveraged for growth, and threats that may arise from the competitive landscape or external economic conditions.

This dual focus allows companies to strategically plan by leveraging their strengths to capitalize on opportunities while addressing weaknesses and mitigating potential threats. Therefore, the strength of SWOT analysis lies in its comprehensive approach to strategic planning, enabling businesses to make informed decisions based on a well-rounded assessment of their current situation.