Business Degree Certification Practice Test 2025 – All-in-One Comprehensive Guide to Exam Success!

A SWOT analysis is a strategic planning tool used to identify and evaluate a company's internal strengths and weaknesses, as well as external opportunities and threats. The inclusion of threats refers to potential challenges and risks that could negatively impact the company's performance or market position. By analyzing these factors, businesses can develop strategies that leverage their strengths, address weaknesses, capitalize on opportunities, and mitigate threats.

In this context, strengths might include assets and resources that give the company a competitive advantage, while weaknesses are areas where the company may lack resources or capabilities. Opportunities represent external factors that the company can exploit for growth or improvement, and threats are the external challenges that could hinder success. Understanding all four components of this model is crucial for comprehensive strategic planning.