The letters in SWOT represent Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis is undertaken to strategically plan for business projects.

A SWOT analysis involves assessing internal factors which are the strengths and weaknesses of the organisation and assessing the external factors which are opportunities and threats surrounding the organisation. Strengths will allow the achievement of goals and weaknesses could restrict performance. By comparing strengths and weaknesses to other companies, a manager can see where they stand. Opportunities are potential for an organisation to achieve goals and threats can restrict the achievement of goals which should be prevented. By understanding the internal and external environment, leaders will have a better understanding on how to compete in the competitive business environment.

Source: My Management 101 assignment