What is a SWOT analysis used for?

A SWOT analysis is a strategic planning tool used to identify an organization's internal strengths and weaknesses, as well as external opportunities and threats. This method provides a comprehensive overview of the factors that can influence a business's success or challenges. By assessing these four dimensions, businesses can develop strategies that leverage their strengths, improve weaknesses, capitalize on opportunities, and mitigate potential threats.

This approach helps in forming a clear understanding of the current situation of the business and in guiding decision-making processes. It dramatically aids in strategic planning, allowing leaders to align resources and strategies effectively to achieve desired outcomes. In contrast, the other options may focus on specific aspects of business management or performance but do not encompass the broad evaluation of both internal and external factors that a SWOT analysis provides. For instance, evaluating customer satisfaction or tracking financial performance are narrower tasks that do not integrate the holistic view that a SWOT analysis offers.