What does the acronym SWOT stand for in business analysis?

The acronym SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, which are key components in strategic planning and business analysis. This analytical tool helps organizations assess their internal and external environments.

Strengths and Weaknesses are internal factors that pertain to resources available, capabilities, and overall performance metrics within the organization. Identifying these helps in understanding what an organization does well and where there is room for improvement.

Opportunities and Threats, on the other hand, are external factors. Opportunities represent favorable conditions in the environment that the organization can exploit for growth or competitive advantage. Threats refer to potential challenges posed by external factors that could hinder the organization’s progress or financial performance.

By conducting a SWOT analysis, businesses can develop strategic plans that leverage strengths and opportunities while addressing weaknesses and mitigating threats, ultimately leading to informed decision-making.

The other options listed do not accurately represent what SWOT means in the context of business analysis, as they either miss key components or misrepresent the focus of the analysis entirely.