Which planning tool analyzes strengths, weaknesses, opportunities, and threats?

Which planning tool analyzes strengths, weaknesses, opportunities, and threats?

• A. SWOT analysis
• B. Production Plan
• C. Financial Plan
• D. Marketing Plan

Answer: (A)

This item tests recognizing a planning framework that analyzes both internal and external factors to guide strategy. SWOT analysis is specifically designed to map strengths and weaknesses inside an organization and opportunities and threats in the external environment. By organizing information into these four areas, it helps you formulate actions that leverage strengths, improve or mitigate weaknesses, seize opportunities, and defend against threats. The other options describe different planning activities—production planning focuses on what and when to produce, financial planning covers budgeting and funding, and marketing planning concentrates on market strategy—none of which provide the consolidated four-quadrant view of internal versus external factors that SWOT offers. So the best answer is SWOT analysis.

This item tests recognizing a planning framework that analyzes both internal and external factors to guide strategy. SWOT analysis is specifically designed to map strengths and weaknesses inside an organization and opportunities and threats in the external environment. By organizing information into these four areas, it helps you formulate actions that leverage strengths, improve or mitigate weaknesses, seize opportunities, and defend against threats. The other options describe different planning activities—production planning focuses on what and when to produce, financial planning covers budgeting and funding, and marketing planning concentrates on market strategy—none of which provide the consolidated four-quadrant view of internal versus external factors that SWOT offers. So the best answer is SWOT analysis.