What is the purpose of a SWOT analysis?

A SWOT analysis serves as a strategic planning tool designed to assess an organization's strengths, weaknesses, opportunities, and threats. The primary purpose is to identify both internal factors (strengths and weaknesses) and external factors (opportunities and threats) that can affect the organization's ability to achieve its goals. By understanding these elements, leadership can formulate strategies that leverage strengths, address weaknesses, capitalize on opportunities, and mitigate threats.

This comprehensive view enables effective decision-making and helps organizations align their resources and capabilities with their environment, ultimately enhancing their strategic planning processes. The analysis contributes to informed decisions that can foster growth and sustainability in changing market conditions.