SWOT Analysis: Strategic Planning for Business Success

SWOT Analysis works on the principle of looking at strengths (capabilities or resources that give an organization an advantage), weaknesses (capabilities that may hold the organization back), opportunities (external factors that can benefit the organization), and threats (external factors that could harm the organization). For example, a bakery may look at a SWOT Analysis in the following manner: Strengths could be a unique recipe, weaknesses could be limited distribution capabilities, opportunities could be a growing demand for baked goods, and threats could be a rise in wheat prices.