In strategic planning, what does SWOT analysis stand for?

SWOT analysis is a tool used in strategic planning that identifies and evaluates the internal and external factors that can affect an organization's ability to achieve its objectives. The acronym stands for Strengths, Weaknesses, Opportunities, and Threats, which serves as a framework for analyzing a company's or project's situation.

Strengths and weaknesses are internal factors; strengths refer to the resources and capabilities that provide an advantage, while weaknesses indicate areas where the organization may be lacking or at a disadvantage. Opportunities and threats are external factors; opportunities signify favorable conditions in the environment that can be leveraged, whereas threats represent challenges or obstacles that could hinder success.

This comprehensive assessment enables organizations to devise strategies that enhance their strengths and opportunities while addressing weaknesses and mitigating risks associated with threats. The clarity provided by SWOT analysis fosters informed decision-making and strategic development, ultimately leading to more effective planning and execution.