DECA+ Business Management and Administration Practice Exam 2025 - Free Business Management Practice Questions and Study Guide

A SWOT analysis evaluates a business's strengths, weaknesses, opportunities, and threats, making it a comprehensive tool for strategic planning. By assessing these four components, businesses can gain insights into their internal capabilities (strengths and weaknesses) and external conditions (opportunities and threats) that could impact their performance.

Strengths and weaknesses focus on the internal aspects of the business, such as resources, processes, and overall performance, allowing organizations to identify areas where they excel or need improvement. Opportunities and threats pertain to the external environment, which includes market dynamics, competition, and other external factors that could affect the business's viability and growth.

This analysis helps organizations develop strategies that leverage their strengths, mitigate weaknesses, capitalize on opportunities, and defend against threats. Other options like financial stability, market trends, and employee satisfaction are important considerations in business management but do not reflect the broader and structured approach of a SWOT analysis to evaluate the overall strategic position of a business.