SWOT Analysis : Business Strategy :: A. Cost-Benefit Analysis : ?

A SWOT analysis helps a company decide its overall strategy by looking at strengths, weaknesses, opportunities, and threats. In a similar way, a cost‑benefit analysis is a tool that evaluates whether a project or decision is worth pursuing by comparing its expected costs with its expected benefits. It lets managers see if the benefits outweigh the costs and helps them choose the best option. For example, a company might use a cost‑benefit analysis to decide whether to invest in a new marketing campaign by adding up projected sales gains and subtracting advertising expenses. The result tells the company whether the campaign is likely to be profitable.