What is a key benefit of conducting a SWOT analysis for a business?

Conducting a SWOT analysis provides valuable insights into both internal and external factors that affect a company. This analysis focuses on identifying the company's Strengths and Weaknesses (internal factors) as well as Opportunities and Threats (external factors). By evaluating these elements, businesses can gain a comprehensive understanding of their current position in the marketplace and the potential challenges or advantages they face. This holistic view allows for better strategic planning, decision-making, and resource allocation, aiding businesses in leveraging their strengths and mitigating weaknesses while also identifying opportunities for growth and potential threats to address.

In contrast, summarizing financial performance pertains specifically to past monetary outcomes and does not capture the broader strategic context. Similarly, assessing employee satisfaction is a narrow focus that does not encompass the comprehensive evaluation of internal and external influences. Lastly, identifying competitors' marketing strategies may be a part of strategic planning, but it falls outside the scope of SWOT analysis, which emphasizes a company's internal and external factors rather than comparative analysis with competitors.