Which aspect of SWOT analysis aims to understand external factors affecting the organization?

In SWOT analysis, the aspect that focuses on understanding external factors affecting an organization is the one that examines threats. Threats refer to challenges posed by outside forces that could negatively impact the organization’s performance and success. This can include factors such as increased competition, changes in regulatory policies, economic downturns, and shifting consumer preferences. Identifying threats allows organizations to develop strategies to mitigate risks and adapt to changing environments, ensuring they remain resilient and competitive.

The other components of SWOT—strengths, weaknesses, and opportunities—primarily relate to internal factors or potential areas of growth. Strengths identify what an organization does well, weaknesses highlight areas for improvement, and opportunities explore external possibilities for expansion or enhancement. While both opportunities and threats analyze external conditions, it is specifically the threats component that concentrates on the negative external challenges that organizations must navigate.