Swot Analysis : The Swot

1888 Words Mar 14th, 2015 8 Pages
The SWOT analysis, a strategic planning tool was developed by Albert Humphrey in the 1960’s and 1970’s. Albert is said to have come up with this strategic planning tool through the use of data the Fortune 500 companies in the United States of America at that time (Lancaster & Massingham, 2011). A SWOT analysis determines the strengths, weaknesses, opportunities and threats, which are a relevant part of any organization especially the ones that get involved in new ventures. This tool assists the users in their quest to make wise and informed decisions. A SWOT analysis is mostly used together with other tools to determine the direction of a business venture. It can be used to analyze places, people, products or industries. It involves the specification of the objectives of a given business venture or project and helps in identifying the both the internal and external factors, which may be favorable or unfavorable to a business objective. The SWOT analysis became a basis from which a company’s strategy is built. However, when used in a wrong manner, it can jeopardize the future of a company. This essay will address the use of a SWOT analysis in an organization. In addition, it will examine the wrong manner in which a SWOT analysis can be used as well as some examples that exhibit the wrong use of this analysis. The use of SWOT analysis began in the 1960s. The initiator of this analysis was Albert Humphrey who saw the need for making informed decisions in business. In his…

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