A SWOT analysis is generally used in business planning. The letters stand for Strengths, Weaknesses, Opportunities, and Threats (SWOT). When determining competitive edge, management needs, and potential problems, each of these categories helps to distinguish corrective action that must be taken or alleviate stress based upon an understanding that the issues have been dealt with.
Strengths and Weaknesses are intended to be internal. This means that the Strengths and Weaknesses listed in the analysis can include but are definitely not limited to: sufficient labour or lack thereof; financial solidarity or struggle; and location of establishment whether it be poor or ideal. Opportunities and Threats, on the other hand, are those that come from a variety of external areas; sometimes out of the company's control. Areas to consider under these headings include, but again are not limited to: competition or product/service advantage; abilities or needs; and management/leadership skills or those that must be addressed. Overall, the SWOT analysis is invaluable to any organization and should be well thought out and honest no matter what the results.
Strengths and Weaknesses are intended to be internal. This means that the Strengths and Weaknesses listed in the analysis can include but are definitely not limited to: sufficient labour or lack thereof; financial solidarity or struggle; and location of establishment whether it be poor or ideal. Opportunities and Threats, on the other hand, are those that come from a variety of external areas; sometimes out of the company's control. Areas to consider under these headings include, but again are not limited to: competition or product/service advantage; abilities or needs; and management/leadership skills or those that must be addressed. Overall, the SWOT analysis is invaluable to any organization and should be well thought out and honest no matter what the results.
