SWOT analysis is a classic strategic planning tool that examines an organization’s Strengths, Weaknesses, Opportunities, and Threats. Created in the 1960s by Albert Humphrey, this framework helps businesses understand their internal and external environments, aiding in informed decision-making.
For students, SWOT is invaluable in understanding strategic management and decision-making processes. To conduct a SWOT analysis, begin by listing the organization’s strengths and weaknesses—such as internal resources, brand reputation, or skill gaps. Then, examine external factors, like market trends or competitor actions, as opportunities and threats. By balancing these four factors, managers can prioritize strategies that align with the company’s capabilities while addressing external challenges.
Learning how to perform a SWOT analysis can be useful not only in class projects but also in real-world situations, such as analyzing a company’s strategic options or assessing your own career prospects.