What is the purpose of conducting a SWOT analysis?

Conducting a SWOT analysis serves the purpose of identifying strengths, weaknesses, opportunities, and threats related to an organization or a project. This holistic assessment allows organizations to understand their internal capabilities and limitations (strengths and weaknesses) as well as the external factors influencing their success (opportunities and threats). By analyzing these four elements, organizations can make informed strategic decisions, prioritize initiatives, and align resources effectively to leverage strengths and opportunities while addressing weaknesses and mitigating threats.

This analytical framework is fundamental in strategic planning because it provides a clear picture of the current situation, which is essential for setting goals and creating actionable strategies. It enables organizations to focus on areas where they can improve and take advantage of market conditions to achieve competitive advantages. In contrast, the other options relate to specific operational activities or functions that do not encompass the broad strategic overview provided by a SWOT analysis.