What Is a SWOT Chart?

In the business world, executives and project managers rely on SWOT analyses to make decisions about marketing strategies and organizational objectives. SWOT charts provide a fundamental evaluation of a business's Strengths, Weaknesses, Opportunities and Threats (hence the acronym).

Strengths and Weaknesses

• SWOT charts look at a company's strengths; that is, what the company's advantages are in the market and what the company does exceedingly well. A SWOT chart also looks at the company's weaknesses. According to a publication by Anthony C. Danca of University of St. Francis, weaknesses should capture the company's deficiencies and failures. It is important to be honest about weaknesses in order for the SWOT chart to be effective.

Opportunities and Threats

• The opportunities in a SWOT chart pertain to what the company has the potential to do. For instance, technological advancements might offer a company the opportunity to produce more goods at a lower cost, so this is seen as an opportunity. Threats are identified based on known obstacles. Anything that stands in the way of the company's success is a threat.

Benefits

• SWOT charts are simple to develop and offer businesspeople a lot of constructive information. SWOT charts abet decision-making by providing a well-rounded overview of the company so that effective changes can be instituted.