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A formal review of a business organization's strengths, weaknesses, opportunities, threats that ultimately contributes to a comprehensive strategic plan is called a

A. SWOT analysis
B. Market research
C. Benchmarking
D. Performance review

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User Dag B
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1 Answer

4 votes

Final answer:

The correct answer is A. SWOT analysis, which is an evaluation method used to identify and analyze the internal and external factors affecting a business's success.

Step-by-step explanation:

The formal review of a business organization's strengths, weaknesses, opportunities, and threats that ultimately contributes to a comprehensive strategic plan is called a SWOT analysis. This method is integral in developing a strategic overview of a business. A SWOT analysis creates a clear framework for understanding internal and external factors that may impact an organization's ability to succeed.

It aligns with the strengths-based management approach described by Donald Clifton, which emphasizes leveraging individual strengths within an organization. An example of a strength might be exceptional public speaking skills or adept event planning. Clifton's research underlines the importance of concentrating on these strengths to bolster overall business performance. However, relying on strengths alone is not a panacea; as Kaiser & Overfield (2011) suggest, neglecting weaknesses or overusing strengths can actually hinder performance.

Therefore, a SWOT analysis represents a balanced approach, examining all aspects of a business environment to inform strategic planning.

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