Education and Career Forum

what is the purpose SWOT analysis? why is it necessary to do a SWOT analysis before selecting a particular strategy for a business organization?

SWOT Analysis helps the org to set the objectives and also helps in knowing the competitiveness present in that field.


Strengths: characteristics of the business or project that give it an advantage over others
Weaknesses: are characteristics that place the team at a disadvantage relative to others
Opportunities: external elements that the project could exploit to its advantage
Threats: external elements in the environment that could cause trouble for the business or project
First, the decision makers should consider whether the objective is attainable, given the SWOTs. If the objective is not attainable a different objective must be selected and the process repeated.
The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in any decision-making situation when a desired end-state (objective) has been defined. Examples include: non-profit organizations, governmental units, and individuals. SWOT analysis may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may also be used in creating a recommendation during a viability study/survey.
please visit wikipedia for further information

Why is it necessary to do SWOT analysis before selecting a particular strategy for a business organization?