In SWOT analysis, which statement correctly identifies external factors?

• A. Weaknesses and opportunities are external factors.
• B. Strengths and threats are external factors.
• C. Opportunities and threats are external factors.
• D. Strengths and opportunities are external factors.

Answer: (C)

In SWOT analysis, external factors come from outside the organization—things in the market, economy, competition, regulations, or other environmental conditions that the organization cannot directly control. These external factors are best captured by opportunities and threats because they represent conditions the organization might capitalize on or must respond to.

Opportunities are favorable external conditions the organization could pursue to grow or improve. Threats are external challenges or obstacles that could hinder performance if not addressed, such as new competitors, regulatory changes, or shifts in customer preferences.

Internal factors, in contrast, are strengths and weaknesses, rooted in the organization’s resources, capabilities, and processes—areas you can influence directly.

So the statement that correctly identifies external factors as opportunities and threats is the right one. Pairings like weaknesses or strengths with opportunities or threats mix internal with external, which isn’t accurate.