Which term describes the analysis of internal strengths and weaknesses and external opportunities and threats?

Which term describes the analysis of internal strengths and weaknesses and external opportunities and threats?

• A. SWOT
• B. PEST
• C. KPI
• D. ROI

Answer: (A)

This is about evaluating internal strengths and weaknesses alongside external opportunities and threats to guide strategy. By looking at what the organization does well and where it struggles, and comparing that to external conditions that could help or hinder, you get a complete picture of where to focus efforts. This combined view is known as SWOT analysis, and it helps shape actions that leverage strengths to seize opportunities, address weaknesses to capitalize on opportunities, use strengths to counter threats, and mitigate risks from external challenges. The other terms don’t fit this purpose: PEST analyzes broad political, economic, social, and technological factors in the external environment, not internal capabilities; KPI measures performance of specific activities; ROI assesses the profitability of an investment.

This is about evaluating internal strengths and weaknesses alongside external opportunities and threats to guide strategy. By looking at what the organization does well and where it struggles, and comparing that to external conditions that could help or hinder, you get a complete picture of where to focus efforts. This combined view is known as SWOT analysis, and it helps shape actions that leverage strengths to seize opportunities, address weaknesses to capitalize on opportunities, use strengths to counter threats, and mitigate risks from external challenges.

The other terms don’t fit this purpose: PEST analyzes broad political, economic, social, and technological factors in the external environment, not internal capabilities; KPI measures performance of specific activities; ROI assesses the profitability of an investment.