True or False: SWOT analysis is primarily a technique used to measure financial performance rather than to identify strategic opportunities and threats.

False. SWOT analysis is a strategic planning tool that helps a company see its Strengths, Weaknesses, Opportunities, and Threats, not its financial numbers. By looking at internal strengths and weaknesses, a business can spot where it can grow and where it is vulnerable. The “Opportunities” and “Threats” parts of the analysis highlight external market chances and risks. For example, a small café might note its strong community ties (strength) and limited parking (weakness), while spotting a nearby office building (opportunity) and rising rent prices (threat).