Swot Analysis:

An organization’s planning process for any of its strategy or project requires an in-depth analysis of   its `strengths` (S), weaknesses (W), which are internal to it, and opportunities (O), threats (T), which are external to it.

An analysis of the organization`s internal and external environment is termed as `SWOT` Analysis.

S = Strengths         :Internal to the company
W = Weaknesses    :             -do-   
O = Opportunities   :  External to the company
T = Threats             :              -do-

Thus, SWOT helps the organization to focus on the internal `strengths` and `weaknesses`, and external `opportunities` and `threats` in the Organization.

Mr. Albert S Humphrey is the creator of SWOT analysis.  He was a chemical engineer from MIT, and an MBA from Harvard University.  He was a well known and widely acclaimed Management Consultant for a number of organizations.  He passed away in 2005 at the age of 79. While at Stanford Research Institute, SOFT Analysis method was developed by him, which later in 1964 became SWOT Analysis by Urik and Orr during a conference.

What is the difference between SOFT and SWOT? 

S = Satisfactory – the good in the present

O = Opportunity – present good becomes an opportunity in the future

F = Faults - mistakes in the present, become weaknesses in the future

T = Threats - present faults become future threats.

Translating SWOT issues into actions under six categories, Albert Humphrey advocated that the six categories provide a framework by which SWOT issues can be developed into actions and managed using the teams.

• Product (what are we selling?)
• Process (how are we selling it?)
• Customer (to whom are we selling it?)
• Distribution (how does it reach them?)
• Finance (what are the prices, costs and investments?)
• Administration (how do we manage all this?)Albert Humphrey advocated that the six categories.

SWOT analysis can be applied to a strategy, project, product, department, group, individual or competitor.  What is needed is a critical and honest appraisal to arrive at the right conclusions.

In conclusion, SWOT is an extremely useful Management tool for success in any sphere of activity – corporate or self.