SWOT analysis is:

• A. an analysis that identifies an operations strengths, weaknesses, and examines it for opportunities or threats
• B. a budgeting method for allocating marketing funds
• C. a competitor benchmarking process
• D. a process for reviewing supplier contracts

Answer: (A)

SWOT analysis looks at both internal and external factors to guide strategic decisions. Strengths and weaknesses come from inside the operation, while opportunities and threats come from the external environment. By identifying these four areas, you can leverage what you do well, address any shortcomings, pursue favorable external chances, and guard against potential risks.

This option describes that process precisely: it identifies internal strengths and weaknesses and examines them in light of external opportunities or threats to shape strategy. The other choices describe different tools—budgeting for marketing funds, benchmarking competitors, or reviewing supplier contracts—which are not what SWOT encompasses. For example, budgeting focuses on money allocation, benchmarking compares performance to others, and supplier contracts relate to procurement, none of which capture the full internal/external analysis that SWOT provides.