What does a SWOT analysis evaluate in strategic management?

A SWOT analysis is a strategic planning tool used to identify and evaluate the Strengths, Weaknesses, Opportunities, and Threats related to an organization. The analysis encompasses both internal and external factors that can affect the current and future performance of the organization.

Specifically, it examines internal strengths, such as valuable resources and capabilities that give the organization a competitive advantage, and internal weaknesses that may hinder its performance. Additionally, it looks at external opportunities in the market that the organization could exploit for growth and threats from the external environment that could pose risks.

This comprehensive evaluation allows organizations to strategically align their resources and capabilities with the external environment, thereby informing decision-making processes and helping to craft effective strategies for competitive advantage. Other options do not capture the full scope of the SWOT analysis, which is why they are not the correct choice.