Strengths, weaknesses, opportunities, and threats form the framework for which analysis?

• A. SWOT Analysis
• B. PEST Analysis
• C. Porter’s Five Forces
• D. Balanced Scorecard

Answer: (A)

Strengths, weaknesses, opportunities, and threats form SWOT analysis, a tool used to assess internal and external factors affecting a business. Strengths and weaknesses are internal elements the organization can influence, such as resources, capabilities, and processes. Opportunities and threats come from the external environment—market trends, competition, regulation, and broader economic or social changes. By considering how internal strengths can be used to capitalize on external opportunities and how internal weaknesses or external threats can be mitigated, SWOT helps identify strategic options and where to focus resources.

This framework is distinct from others: PEST Analysis examines macro-environmental factors (Political, Economic, Social, Technological); Porter’s Five Forces analyzes the competitive intensity within an industry; the Balanced Scorecard translates strategy into performance metrics. So the four components together create SWOT analysis.