What analysis evaluates both internal strengths and weaknesses as well as external opportunities and threats?

Prepare for the Edexcel AS/A‑Level Business Theme 3 Exam. Engage with multiple choice questions and detailed explanations. Enhance your understanding and get exam ready with our comprehensive resources!

The correct answer is SWOT analysis because it specifically focuses on evaluating four key aspects of a business or project: internal strengths and weaknesses, and external opportunities and threats. This framework helps organizations understand their current position and strategize for the future. By identifying internal factors, such as company resources or capabilities, along with external factors like market trends and competitive landscapes, businesses can formulate strategies that leverage strengths, mitigate weaknesses, capitalize on opportunities, and defend against threats.

In contrast, PESTLE analysis is more focused on external factors that impact an organization, examining political, economic, social, technological, legal, and environmental influences. Risk assessment works on identifying, analyzing, and prioritizing risks but does not encompass a comprehensive evaluation of strengths and weaknesses. BSC analysis, or Balanced Scorecard analysis, is a performance management tool that translates an organization’s strategic objectives into a set of measurable targets, but it does not directly analyze strengths, weaknesses, opportunities, and threats. Thus, SWOT analysis is uniquely suited for the comprehensive evaluation described in the question.

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