swot

SWOT is a strategic planning tool used to identify and analyze the internal and external factors that can affect the achievement of objectives. The acronym stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are typically considered internal to the organization, while opportunities and threats originate in the external environment. By contrasting internal capabilities with external factors, SWOT helps teams develop strategies that leverage strengths, address weaknesses, exploit opportunities, and mitigate threats.

SWOT originated in the 1960s at the Stanford Research Institute as part of a broader effort to improve corporate planning. The concept was popularized in business discourse and has since been adopted across sectors, including government and non-profit organizations. The related TOWS matrix, which links SWOT factors to strategic options, was developed by Heinz Weihrich in 1982.

The four components are:

- Strengths: internal attributes that support achievement of objectives.

- Weaknesses: internal attributes that hinder achievement.

- Opportunities: external chances to improve performance.

- Threats: external elements that could cause trouble or harm.

Process and use: typical applications involve defining the objective, gathering relevant data, listing factors in the four categories, and evaluating their significance. The result is a matrix that informs strategy development, scenario planning, and action planning. SWOT is usually qualitative, but quantitative weighting or scoring can be added to prioritize factors.

Limitations: the quality of insights depends on data quality and objectivity; it provides a snapshot rather than dynamic analysis and can oversimplify complex interdependencies. It is best used in conjunction with other analytical tools such as PESTLE, scenario planning, or decision matrices.