SWOT analysis

The combined analysis of both the internal and external environments which can affect the performance of the organisation is referred to as SWOT. This is the concept of accessing the organisation in terms of its Strengths, Weaknesses, Opportunities and Threats. This can be applied to various levels such as corporate level, business unit level down to departmental or section level. When starting to work on a strategy the SWOT analysis can help to ensure that the whole environment is understood fully and by doing a SWOT analysis will be able to show the direction that the company is best to head in, while ensuring that they are protected against any potential threats.

One of the first writers to develop this idea and stress the importance of SWOT analsis was Philip Selznick in 1957, and then it was later developed by Michael Porter in the 1980's

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