Western Governors University (WGU) MGMT5000 C200 Managing Organizations and Leading People Practice Exam

A SWOT analysis is a strategic planning tool that organizations use to identify and evaluate their Strengths, Weaknesses, Opportunities, and Threats. This framework helps in understanding both internal and external factors that can affect the organization's ability to achieve its objectives. Strengths and weaknesses focus on internal capabilities and resources, while opportunities and threats examine external factors that could impact the organization. By analyzing these four elements, organizations can better strategize and make informed decisions to enhance their operational effectiveness and competitive positioning.

The other options, while related to performance and evaluation, do not capture the comprehensive purpose of a SWOT analysis. Evaluating an individual’s job performance, assessing an organization’s budget, or creating employee performance reviews are more specific processes that do not encompass the broader strategic context that a SWOT analysis provides.