Which strategic method focuses on analyzing internal and external factors for decision-making?

The correct choice is SWOT Analysis because it specifically evaluates both internal and external factors that can impact an organization's strategic decision-making. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

The internal factors, strengths and weaknesses, are derived from within the organization and are focused on what the organization can control, such as resources, capabilities, and processes. These aspects help in understanding the organization's current position.

The external factors, opportunities and threats, are derived from the external environment and include market trends, competition, regulatory changes, and economic conditions. This analysis helps organizations identify potential areas for growth and challenges they may face.

By systematically analyzing these four components, managers can make informed decisions that leverage strengths, address weaknesses, capitalize on opportunities, and mitigate threats, leading to a more comprehensive strategic plan. This holistic view is what sets SWOT Analysis apart from other tools that may focus more narrowly on either internal or external factors exclusively.