What is SWOT analysis and how is it used in strategic planning?

SWOT analysis is indeed a strategic planning tool used by organizations to evaluate their internal and external environments. The internal analysis involves identifying strengths and weaknesses. Strengths are the organization's capabilities and resources that it can use to gain a competitive advantage, while weaknesses are areas where the organization may be lacking or at a disadvantage.

The external analysis, on the other hand, involves identifying opportunities and threats. Opportunities are external factors that the organization can exploit to its advantage, while threats are external factors that could harm the organization.

By examining these four elements, an organization can develop strategies that leverage its strengths and opportunities, mitigate its weaknesses, and guard against threats. This helps the organization to focus its resources on areas where they will be most effective.