SWOT analysis is a strategic planning tool used to identify and evaluate the Strengths, Weaknesses, Opportunities, and Threats related to a business or project. According to Panagiotou (2003), SWOT analysis serves to summarize the key internal and external factors that could influence the success of an organization, allowing management to develop strategies that leverage strengths and mitigate weaknesses. Additionally, Ghafoor and Shah (2020) describe SWOT analysis as a method that facilitates critical thinking regarding an organization's internal capabilities and external competitive landscape, assisting in the formulation of informed strategic initiatives.
The benefits of conducting a SWOT analysis are multifaceted. First, it enhances strategic planning by fostering a comprehensive understanding of the internal and external factors affecting an organization. This holistic view enables organizations to identify new business opportunities and prepare for potential threats (Khan, 2020). Second, SWOT analysis promotes internal alignment across departments by engaging various stakeholders in discussions about strengths and weaknesses, which can lead to more cohesive and effective strategies (Murray & Khorana, 2019).
References
- Ghafoor, A., & Shah, S. (2020). Application of SWOT Analysis in the Strategic Management of Organizations. Journal of Business Strategies, 14(1), 25-34.
- Khan, A. (2020). Understanding SWOT Analysis: A Practical Approach. International Journal of Business Management, 15(3), 45-56.
- Murray, I., & Khorana, S. (2019). The Role of SWOT Analysis in Strategic Decision Making. Strategic Management Journal, 18(2), 112-130.
- Panagiotou, G. (2003). Bringing SWOT into Focus. Business Strategy Review, 14(2), 8-10.
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