Which analytical tool assesses internal strengths and weaknesses and external opportunities and threats of an organization?

Which analytical tool assesses internal strengths and weaknesses and external opportunities and threats of an organization?

• A. Porter's Five Forces
• B. SWOT analysis
• C. PEST analysis
• D. BCG Matrix

Answer: (B)

Assessing internal strengths and weaknesses and external opportunities and threats is done with SWOT analysis. This tool looks at what the organization does well and where it’s lacking (internal), alongside favorable external chances to grow and potential external dangers to watch (external). By mapping these together, a company can develop strategies that leverage strengths to seize opportunities, address weaknesses to defend against threats, and position itself to capitalize on favorable external trends. The other tools focus on different angles: Porter's Five Forces examines industry competition; PEST analyzes broad macro-environmental factors; the BCG Matrix evaluates a portfolio of products or business units based on market growth and market share. So SWOT analysis is the one that covers both internal and external dimensions as described.

Assessing internal strengths and weaknesses and external opportunities and threats is done with SWOT analysis. This tool looks at what the organization does well and where it’s lacking (internal), alongside favorable external chances to grow and potential external dangers to watch (external). By mapping these together, a company can develop strategies that leverage strengths to seize opportunities, address weaknesses to defend against threats, and position itself to capitalize on favorable external trends. The other tools focus on different angles: Porter's Five Forces examines industry competition; PEST analyzes broad macro-environmental factors; the BCG Matrix evaluates a portfolio of products or business units based on market growth and market share. So SWOT analysis is the one that covers both internal and external dimensions as described.