SWOT

Abstract

A SWOT analysis is a simple way to examine a firm’s current situation by accounting for a firm’s strengths, weaknesses, opportunities, and threats. It provides a means to account for internal and external factors plus positive and negative factors confronting a firm, thereby providing a balanced perspective of strategic issues. The SWOT analysis can be used to establish strategic fit between a company’s internal environment (its resources and capabilities) and its external environment. This chapter discusses the underlying theory, core idea, depiction, process, insight or value created, and risks and limitations of SWOT performance analysis. Finally, the chapter discusses the illustration of the Chocolate Moose and applies the steps of SWOT analysis to this case.