NOCTI Business Test 2025 – 400 Free Practice Questions to Pass the Exam

SWOT analysis is a strategic planning tool used by businesses to identify their Strengths, Weaknesses, Opportunities, and Threats. This analysis provides critical insights that allow organizations to understand internal and external factors affecting their operations. By evaluating these components, businesses can formulate a strong business strategy that leverages their strengths to capitalize on opportunities while also addressing weaknesses and mitigating threats.

The development of a strong business strategy is crucial because it helps companies navigate competitive landscapes, allocate resources efficiently, and set achievable objectives based on a realistic appraisal of their environment. While the analysis could inform other aspects of the business, such as marketing plans, financial budgets, or team development, its primary aim is to support the overarching strategic direction of the organization, making option B the most appropriate choice.