Which analysis tool helps identify the strengths and weaknesses of an organization?

The correct answer is SWOT analysis, which is specifically designed to evaluate the internal strengths and weaknesses of an organization, as well as the external opportunities and threats it faces. This analytical tool provides a comprehensive overview that helps decision-makers understand where their organization stands in relation to its environment and competitive landscape.

By identifying strengths, an organization can leverage them to capitalize on opportunities and mitigate threats. Conversely, recognizing weaknesses allows the organization to strategize on how to improve and address potential challenges. This dual focus on internal and external factors makes SWOT analysis a valuable tool in strategic planning and organizational development.

PEST analysis focuses on external factors—political, economic, social, and technological—but does not delve deeply into internal strengths and weaknesses. Value chain analysis looks at the activities within an organization that contribute to its value proposition but does not provide a broad assessment of both strengths and weaknesses. Porter's Five Forces framework primarily examines the competitive environment and market dynamics, which lacks the internal focus needed to identify strengths and weaknesses.