SWOT Analysis
SWOT is both one of the most simple and one of the most useful tools taught in Business. SWOT stands
for Strengths, Weaknesses, Opportunities, and Threats. Strengths and Weaknesses describe characteristics
of the organisation itself, or internal characteristics, while Opportunities and Threats are present in the
external environment. By understanding its own strengths and weaknesses and then evaluating external
opportunities and threats, managers can clarify the existing situation and begin to think about how to
maintain and improve their competitive position.
Figure 1. SWOT analysis.
Internal factors: strengths and weaknesses
Every organisation is unique. There are therefore an infinite number of potential strengths and weaknesses
that can be included in a SWOT analysis. One way to develop a list of an organisation’s strengths is to
think of the business functions, as suggested in Table 1.