SWOT analysis is used in strategic planning to assess which four elements?

• A. Strengths, Weaknesses, Risks, Prospects
• B. Strengths, Weaknesses, Opportunities, Threats
• C. Internal capabilities and external environment
• D. Financial metrics and market trends

Answer: (B)

SWOT analysis in strategic planning looks at four areas to understand where a company stands and what could affect its success. Strengths are internal capabilities that give an advantage. Weaknesses are internal factors that could hold the company back. Opportunities are external chances for growth or improvement. Threats are external risks that could create problems. By examining these four areas, teams can build strategies that leverage strengths, fix weaknesses, pursue opportunities, and guard against threats. The four elements—strengths, weaknesses, opportunities, and threats—are the standard set. The other options mix different concepts or describe inputs rather than the specific four components.