Glossary – SWOT analysis

What is SWOT analysis?

Is a method that evaluates some elements of an organization. This kind of analysis can be carried out for a company, product, place, industry or person.

SWOT analysis aims to identify the key internal and external factors seen as important to achieving an objective.

It groups key pieces of information into two main categories:

• Internal factors: the strengths and weaknesses internal to the organization.
• External factors: the opportunities and threats presented by the environment external to the organization.

What does it mean?

SWOT analysis is an acronym for: strengths, weaknesses, opportunities and threats.

• Strengths: characteristics of the business or project that give it an advantage over others.
• Weaknesses: characteristics of the business that place the company or project at a disadvantage relative to others.
• Opportunities: elements in the environment that the company or project could exploit to its advantage.
• Threats: elements in the environment that could cause trouble for the business or project.

Why is SWOT analysis important?

SWOT analysis is important because they can inform later steps in planning to achieve the objectives. It helps organizations decide whether or not an objective is obtainable and therefore enables organizations to set achievable goals, objectives, and steps to further the social change or community development effort.