What is the purpose of a SWOT matrix?

The purpose of a SWOT matrix is to visually represent the strengths, weaknesses, opportunities, and threats related to a business or project. This tool allows organizations to conduct a comprehensive analysis of both internal (strengths and weaknesses) and external (opportunities and threats) factors that can impact their performance. By laying out this information in a clear and structured format, businesses can identify areas where they excel, where they might need improvement, potential opportunities for growth, and external threats that require strategic planning. This visual representation aids strategic decision-making by helping stakeholders quickly grasp the current situation of the business and develop actionable strategies.

Other options, although related to strategic planning and analysis, do not accurately capture the primary function of the SWOT matrix. Financial forecasts, market trend analyses, and employee performance reviews involve different methodologies and tools that are distinct from the SWOT framework. The SWOT matrix is specifically designed to facilitate situational analysis and strategic planning rather than being focused on these other operational aspects.