What does a SWOT analysis assess?

A SWOT analysis is a strategic planning tool used to evaluate a company's internal and external environment. It specifically assesses strengths and weaknesses, which are internal factors, alongside opportunities and threats, which are external factors. This comprehensive overview helps organizations identify their competitive advantages and areas for improvement, as well as potential market opportunities and external risks they may face.

By examining these four dimensions, businesses can formulate strategies that leverage strengths and opportunities while addressing weaknesses and mitigating threats. This multi-faceted approach makes SWOT analysis a vital tool for comprehensive strategic planning and decision-making in various contexts, including legal management.

The other options focus on narrower aspects. Internal company metrics are important, but a SWOT analysis encompasses a broader range of factors beyond just internal performance. Assessing financial performance across time is a critical part of financial analysis, but it does not capture the holistic view that SWOT provides. Lastly, while employee satisfaction is essential for organizational health, it is just one element that might be considered within a larger SWOT analysis rather than the entire scope of what SWOT aims to evaluate.