What does SWOT analysis stand for?

SWOT analysis is a strategic planning tool used to identify and evaluate the internal and external factors that can impact an organization or project. The acronym stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths refer to the positive attributes internal to the organization that give it an advantage over others. Weaknesses are the internal factors that may hinder the organization’s performance. Opportunities are external factors that the organization could exploit to its advantage, while Threats are external challenges that could pose risks to the organization's success.

This strategic framework helps businesses understand their current position and aids in decision-making by highlighting where they can leverage strengths, improve weaknesses, capitalize on opportunities, and mitigate threats. This comprehensive view supports informed strategic planning and resource allocation.

The other choices do not accurately describe the components of the SWOT analysis and instead mix unrelated business concepts, making them unsuitable as definitions for this important analytical tool.