A strategic planning framework that evaluates Strengths, Weaknesses, Opportunities, and Threats related to a business or project. It provides a structured way to assess internal capabilities and external factors affecting an organization.
Created in the 1960s at Stanford Research Institute by Albert Humphrey, originally called SOFT analysis (Satisfactory, Opportunities, Faults, Threats). The acronym evolved to SWOT by the 1970s, with 'swot' coincidentally being British slang for a studious person, making it memorable for business students.
Despite being taught in virtually every business school globally, SWOT analysis is often criticized by strategy experts as being too simplistic for complex business environments. Interestingly, the framework's enduring popularity may stem from its democratic nature - it allows teams of varying expertise levels to contribute meaningfully to strategic discussions.
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