SWOT Analysis
SWOT analysis is a strategic planning technique that evaluates an organization or project by examining its Strengths, Weaknesses, Opportunities, and Threats to inform decision-making and strategy development.
Explanation
SWOT analysis provides a structured framework for assessing both internal capabilities (strengths and weaknesses) and external factors (opportunities and threats). Strengths and weaknesses are within the organization's control—skilled team, strong brand, or limited budget. Opportunities and threats come from the external environment—market growth, new regulations, or emerging competitors.
In project management, SWOT analysis is useful for risk identification, stakeholder analysis, procurement decisions, and project selection. During risk identification, strengths and opportunities map to positive risks (opportunities to exploit), while weaknesses and threats map to negative risks (threats to mitigate). SWOT can also be used during project retrospectives to assess organizational readiness for future initiatives.
On the exam, SWOT analysis is referenced in multiple knowledge areas, particularly risk management and business environment analysis. Know that strengths and weaknesses are internal factors, while opportunities and threats are external. Questions may ask you to categorize specific project conditions into the correct SWOT quadrant.
Key Points
- •Four quadrants: Strengths, Weaknesses, Opportunities, Threats
- •Strengths and weaknesses are internal; opportunities and threats are external
- •Used for risk identification, project selection, and strategic planning
- •Commonly applied during planning and risk management processes
Exam Tip
Internal factors are strengths and weaknesses. External factors are opportunities and threats. This distinction is a common exam question.
Frequently Asked Questions
Related Topics
PESTLE Analysis
PESTLE analysis is a framework for analyzing the macro-environmental factors that affect an organization or project: Political, Economic, Social, Technological, Legal, and Environmental.
Competitive Analysis
Competitive analysis is the process of identifying and evaluating the strengths, weaknesses, strategies, and market positions of current and potential competitors to inform organizational and project decisions.
Market Conditions
Market conditions are the external economic, competitive, and industry factors that influence project decisions, including supply and demand, pricing trends, competitor actions, and economic cycles.
Organizational Strategy
Organizational strategy is the long-term plan an organization follows to achieve its mission, vision, and goals, serving as the foundation for portfolio, program, and project selection decisions.
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Part of
Business Environment & Strategy
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