Definition:

SWOT stands for strengths, weaknesses, opportunities and threats. A SWOT analysis
is a technique that many companies use during strategic planning; basically an
organized way to evaluate where to focus time, money and energy to improve
productivity and growth. A SWOT analysis can be a valuable tool for setting
milestones or approaching a venture investor, because it demonstrates a solid
understanding of your company performance and the factors influencing productivity.

To do the analysis, start by brainstorming each of the four categories in terms of

your business operations. Narrow the list in each category to the main items, and
assess each individually with respect to their effects/implications on the organization.
Finally assess the strengths and weaknesses in terms of how they relate to external
opportunities and threats. Strengths that can be applied to external opportunities are
areas of potential growth, while weaknesses that lead to external threats are areas that
need to be addressed.

For some ideas of what might qualify as strengths or weaknesses, consider what
venture investors look for in a company.

Also Known As: Strategic planning

Examples:
The bank required a business plan with a SWOT analysis to demonstrate the new
company's strategic planning process, before approving the loan.

Elsewhere on the Web

 How to Conduct a SWOT Analysis

 SWOT for Biotech
 SWOT and Other Business Tools

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 Get ISO Certified

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