What does the acronym SWOT stand for in strategic planning?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. This framework is widely used in strategic planning to help organizations understand both internal and external factors that can impact their success.

Strengths refer to the internal attributes and resources that an organization possesses, which contribute positively to its effectiveness and competitive advantage. Weaknesses highlight the internal challenges or limitations that may hinder an organization’s performance. Opportunities encompass external factors that the organization can capitalize on to grow or improve, while threats are external challenges or risks that could adversely affect the organization.

By analyzing these four components, organizations can develop strategies that leverage their strengths, address their weaknesses, capitalize on opportunities, and mitigate potential threats. This holistic view is essential for effective decision-making and long-term planning in any organization.