Fundamentals of Business Intelligence (FBI) Practice Exam

What does a SWOT analysis address?

1. Strategies, Workflows, Options, and Trends

2. Strengths, Weaknesses, Opportunities, and Threats

3. Systems, Work, Output, and Tasks

4. Synergy, Weaknesses, Operations, and Timelines

The correct answer is: Strengths, Weaknesses, Opportunities, and Threats

A SWOT analysis is a strategic planning tool that helps organizations identify and evaluate their internal strengths and weaknesses, as well as external opportunities and threats. This four-element framework allows businesses to gain insight into key factors that can affect their performance and decision-making. The component of strengths focuses on the internal capabilities and resources that give the organization a competitive advantage, such as skilled personnel, strong brand reputation, or proprietary technologies. Weaknesses, on the other hand, identify internal limitations or areas lacking in effectiveness that could hinder the organization's success, like gaps in skills or resource constraints. Opportunities represent external factors that the organization can capitalize on to grow or improve its position, such as emerging markets or changes in consumer preferences. Threats encompass external challenges that could negatively affect the organization, such as economic downturns, increased competition, or regulatory changes. The robust nature of a SWOT analysis allows organizations to develop actionable strategies by leveraging strengths and opportunities while addressing weaknesses and mitigating threats. This structured approach is widely recognized in various business contexts for not only assessing the current situation but also guiding future strategic planning.