Which analytical tool helps identify organizational strengths and weaknesses?

The analytical tool that helps identify organizational strengths and weaknesses is the SWOT analysis. This framework is designed to provide a structured approach to understanding an organization’s internal capabilities and challenges as well as its external opportunities and threats.

Within the SWOT analysis, strengths and weaknesses specifically address internal factors. Strengths reveal what an organization does well, such as resources, processes, or expertise that can give it a competitive advantage. Conversely, weaknesses shed light on areas where the organization may fall short in comparison to competitors or where it may lack resources or capabilities.

By identifying these internal elements, organizations can formulate strategies that leverage their strengths while addressing or mitigating their weaknesses. This insight is crucial for strategic planning as it enables an organization to capitalize on opportunities in the environment and defend against potential threats.

Other analytical tools serve different purposes. For instance, PEST analysis focuses on external macro-environmental factors influencing an organization, such as political, economic, social, and technological conditions. Value chain analysis examines the internal activities of an organization to understand where value is being added and where improvements can be made, but it does not classify these activities as strengths or weaknesses per se. Benchmarking involves comparing an organization’s processes and performance metrics to industry standards or best practices but does not directly