Which analysis focuses on identifying and assessing a company's strengths and weaknesses?

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The correct choice is SWOT Analysis because it is specifically designed to evaluate a company's internal strengths and weaknesses as well as its external opportunities and threats. This framework allows analysts and decision-makers to gain a comprehensive understanding of the factors that can affect the organization’s performance and strategic positioning. By assessing strengths, such as unique resources or capabilities, and weaknesses, such as resource limitations or skill gaps, companies can strategically plan to leverage their advantages while addressing their vulnerabilities.

In contrast, PEST Analysis is primarily concerned with external macro-environmental factors—Political, Economic, Social, and Technological—that may impact a business but does not identify internal strengths or weaknesses. Porter’s 5 Forces framework focuses on industry structure and competitive dynamics, assessing market forces that influence profitability and competition, rather than evaluating an individual company’s internal capabilities. Lastly, Credit Risk Analysis is centered on assessing the creditworthiness of a borrower and their ability to repay loans, which is unrelated to a company's overall strengths and weaknesses. Thus, SWOT Analysis is the most appropriate tool for this particular focus.

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