DECA Marketing Cluster Practice Exam

What does a SWOT analysis identify?

1. Only external threats

2. Organizational strengths and weaknesses

3. Market trends only

4. Financial performance metrics

The correct answer is: Organizational strengths and weaknesses

A SWOT analysis is a strategic planning tool that helps organizations identify their internal capabilities and external environment. The acronym stands for Strengths, Weaknesses, Opportunities, and Threats. The analysis specifically focuses on two internal factors—strengths and weaknesses—which reflect the organization's resources, capabilities, and overall position in the market. It also examines external factors—opportunities and threats—that shape the environment in which the organization operates. By identifying organizational strengths, businesses can leverage them for competitive advantage, while understanding weaknesses allows them to address areas that need improvement. This framework aids in strategic decision-making by providing a comprehensive overview of factors that can impact the organization. Therefore, the correct identification of organizational strengths and weaknesses is essential to effective strategic planning.