Developing a fuller awareness of the business; its strengths and weaknesses; opportunities and threats; aids in strategic planning and effective decision-making. SWOT analysis can offer valuable perspectives at any stage of the organization’s evolution.
The purpose of the analysis is to reveal positive forces and synergies that can drive the venture forward, and potential problems that need to be addressed. It is a useful tool for managers considering the present and future circumstance of their work unit, as well as the organization overall. By determining and documenting both internal and external factors, the manager becomes more aware of opportunities and threats, informing the group or organization on next steps.