Which analysis technique assesses the strengths, weaknesses, opportunities, and threats of a business?

The correct answer is SWOT Analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats. This analytical technique is widely used in business planning and strategic development. It allows organizations to evaluate both internal factors (strengths and weaknesses) and external factors (opportunities and threats) that can impact their operations and success in the market.

By identifying strengths, a business can leverage its advantages to enhance performance, while recognizing weaknesses helps to address areas for improvement. Opportunities represent external conditions that the organization can exploit for growth, and threats are external challenges that may pose risks to achieving objectives. This comprehensive understanding derived from SWOT analysis is crucial for making informed decisions and formulating effective strategies.

In contrast, market research primarily focuses on gathering data about consumer preferences and market trends; competitive analysis assesses the strengths and weaknesses of competitors, and strategic planning encompasses the overall process of defining a business's direction and making decisions on allocating resources to pursue that direction. While these techniques may also provide valuable insights, only SWOT analysis specifically organizes both internal and external factors into a clear framework.