What does SWOT stand for?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, making it a valuable tool for strategic planning and analysis. This framework is widely used in business contexts to identify internal strengths and weaknesses alongside external opportunities and threats faced by an organization.

Understanding this framework is essential because it helps organizations evaluate their current position in the market, enabling them to leverage their strengths, mitigate their weaknesses, capitalize on opportunities, and prepare for potential threats. By assessing these four components, businesses can develop strategies that enhance their competitive advantage and increase their chances for success.

The other options provided mix elements of business analysis but do not accurately represent the established meaning of SWOT. Recognizing the distinct terms in the correct answer is crucial, as they provide a comprehensive view of both the internal and external factors affecting an organization.