Which analysis method combines both internal and external factors in its assessment?

The correct choice is SWOT analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats. This method effectively combines both internal factors (strengths and weaknesses) and external factors (opportunities and threats) in its assessment.

By examining internal strengths and weaknesses, businesses can identify their capabilities and areas that require improvement or additional resources. On the other hand, analyzing external opportunities and threats allows organizations to understand the market environment, including competitive pressures, economic conditions, and potential challenges.

SWOT analysis provides a comprehensive framework for strategic planning because it enables organizations to align their internal strengths with external opportunities while addressing weaknesses and mitigating threats. This holistic view is crucial for making informed business decisions that leverage both internal resources and external market dynamics.

In contrast, the other methods listed focus on specific aspects: PESTLE concentrates solely on external factors, Porter’s Five Forces analyzes competitive forces impacting an industry, and market segmentation looks at subdividing a market into distinct groups. These approaches do not integrate both internal and external factors as effectively as SWOT analysis does.