Which of the following is a limitation of SWOT analysis?

The choice indicating that a limitation of SWOT analysis is that it overemphasizes internal strengths is insightful as SWOT inherently emphasizes all four aspects—strengths, weaknesses, opportunities, and threats. However, the essence of SWOT is not to downplay internal strengths but to present a balanced view that includes both internal factors (strengths and weaknesses) and external factors (opportunities and threats). The critique about overemphasizing internal strengths arises from the perspective that sometimes organizations may become too focused on their internal capabilities and lose sight of external challenges and opportunities.

Choosing this as a limitation might suggest a misunderstanding of the SWOT framework, as the purpose of SWOT is to provide a comprehensive viewpoint rather than highlight one aspect excessively. Additionally, the analysis aims to balance and integrate all four elements, allowing organizations to develop holistic strategies.

In contrast, a more recognized limitation of SWOT analysis is that it may indeed overly simplify complex situations. It does not inherently provide a financial overview, nor does it restrict analysis to short-term goals. These perspectives highlight the critical understanding that SWOT should be utilized as a tool alongside other analyses and not as a standalone framework for comprehensive business planning.