What does 'SWOT analysis' assess in business analysis?

The correct answer is focused on the identification and assessment of internal and external factors that can impact an organization or a project. SWOT analysis specifically evaluates four components: Strengths, Weaknesses, Opportunities, and Threats.

Strengths refer to internal attributes that are advantageous in achieving objectives, such as unique resources or capabilities. Weaknesses highlight internal challenges or limitations that could hinder success. Opportunities are external chances that the organization can capitalize on to enhance its market position or performance. Lastly, Threats are external factors that could pose risks or challenges to the organization’s success.

This holistic approach provides a clear framework for strategic planning and decision-making, allowing business analysts to identify areas for improvement, leverage advantageous conditions, and prepare for potential obstacles. By conducting a SWOT analysis, analysts can effectively inform stakeholders about the current position of the business and guide future initiatives based on a well-rounded understanding of the external and internal landscape.