What does SWOT analysis help organizations assess?

SWOT analysis is a strategic planning tool that helps organizations identify and evaluate their internal strengths and weaknesses, as well as external opportunities and threats. This comprehensive assessment allows organizations to understand their overall position in the market and to develop strategies that leverage their strengths, mitigate their weaknesses, capitalize on opportunities, and defend against threats. By focusing on both internal and external factors, organizations can create a well-rounded picture of their current situation, which is essential for informed decision-making and strategic planning.

The other options, while relevant to certain aspects of organizational assessment, do not encapsulate the primary purpose of SWOT analysis. Financial performance metrics, market share among competitors, and employee engagement levels are all valuable considerations in strategic management but are more focused and do not encompass the broad internal and external analysis that SWOT provides. Therefore, the correct answer underscores the holistic nature of SWOT analysis in evaluating the business environment.