Future Business Leaders of America (FBLA) Marketing Practice Test

SWOT analysis is a strategic planning tool used to identify and evaluate the internal and external factors that could impact an organization or project. It stands for Strengths, Weaknesses, Opportunities, and Threats.

Understanding each component provides valuable insights:

- Strengths refer to the internal attributes and resources that support a successful outcome, such as skilled personnel, strong brand reputation, or unique technology.

- Weaknesses are also internal factors but represent areas where the organization may be at a disadvantage, such as limited resources or gaps in expertise.

- Opportunities are external factors that the organization can capitalize on to grow or improve, such as emerging markets, industry trends, or changes in consumer preferences.

- Threats are external challenges that could hinder the organization’s performance, including economic downturns, increased competition, or regulatory changes.

This structured approach allows businesses to create strategies that leverage their strengths, address their weaknesses, seize opportunities, and mitigate threats, leading to more informed decision-making and strategic planning. The other options do not accurately capture these critical components, which is why they are not the correct choice.