What is the primary purpose of conducting a SWOT analysis?

The primary purpose of conducting a SWOT analysis is to understand a business's current state and opportunities. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, which are key components that a business needs to assess to gauge its position in the market. This analysis allows organizations to identify their internal strengths and weaknesses while also recognizing external opportunities and threats that could impact their operations. By comprehensively understanding these factors, businesses can make informed strategic decisions, capitalize on opportunities, enhance their strengths, and address challenges effectively.

The other options focus on specific aspects that are not the main goal of a SWOT analysis. Financial forecasts pertain to predicting future financial performance rather than assessing a current state. Analyzing competitor strategies is a separate strategic activity that may inform a SWOT analysis but is not the purpose of it. Evaluating employee performance reviews also targets internal management evaluation rather than a holistic view of the business's strategic position in relation to external opportunities and challenges.