What does a SWOT analysis help managers to evaluate?

A SWOT analysis is a strategic tool that helps managers evaluate the Strengths, Weaknesses, Opportunities, and Threats related to their organization or a specific project. This framework provides a structured way to assess internal capabilities and external market conditions. By identifying strengths, managers can leverage these assets to gain a competitive edge. Recognizing weaknesses allows for the implementation of necessary improvements. Opportunities present potential avenues for growth and expansion, while threats highlight challenges that could impede success.

This holistic view aids in strategic planning and decision-making, as it combines both internal and external factors. Managers can use this information to formulate strategies that capitalize on strengths and opportunities while mitigating weaknesses and threats, ultimately guiding the direction of the organization more effectively.