DECA Sports and Entertainment Marketing Practice Exam

What aspect of a business does a SWOT analysis primarily focus on?

1. Employee satisfaction

2. Financial performance

3. Market conditions

4. Internal and external factors

The correct answer is: Internal and external factors

A SWOT analysis primarily focuses on identifying and evaluating the internal and external factors that can impact a business's success. The acronym SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Internal factors refer to the strengths and weaknesses of the organization itself, such as resources, capabilities, and processes. External factors encompass the opportunities and threats presented by the market environment, including competition, economic trends, and regulatory influences. By analyzing these factors, businesses can develop strategies that leverage their strengths, address weaknesses, capitalize on opportunities, and mitigate threats, ultimately leading to better decision-making and strategic planning. This holistic view is what makes SWOT analysis a popular tool in strategic management and marketing.