What types of factors does a SWOT analysis assess?

A SWOT analysis is a strategic planning tool that assesses an organization's internal strengths and weaknesses, as well as its external opportunities and threats. The acronym "SWOT" stands for these four elements. By evaluating both internal and external factors, a SWOT analysis provides a comprehensive view of the strategic position of the organization.

The internal factors—strengths and weaknesses—focus on attributes within the organization, such as resources, capabilities, and practices that can impact performance. In contrast, the external factors—opportunities and threats—consider external environmental influences, including market trends, competition, and regulatory issues.

This dual focus on internal and external factors allows organizations to identify current advantages and challenges while also planning for future potential, making it an invaluable tool in strategic decision-making.

The other options narrow down the scope of the analysis inappropriately. Legal and regulatory factors would be part of the external opportunities and threats but do not encompass the full scope of a SWOT analysis. Similarly, focusing solely on financial figures and historical data or on marketing strategies and advertising techniques does not capture the broader spectrum of insights that can be gained from a complete SWOT analysis.