What does SWOT analysis evaluate?

SWOT analysis is a strategic planning tool that helps organizations assess their internal strengths and weaknesses, as well as external opportunities and threats. By evaluating strengths, a business can identify what it does well and leverage those advantages to achieve its goals. Weaknesses highlight areas where improvements are needed, allowing for proactive problem-solving. Opportunities point to external factors that the organization could exploit for growth or advantage, while threats identify potential challenges or risks that could hinder performance. This comprehensive evaluation provides a framework for decision-making and strategy development, making it a vital tool in business education and management.