Final answer:
SWOT analysis assesses the internal Environment for strengths and weaknesses, providing a structured approach for strategic planning but also having limitations such as lack of prioritization and vulnerability to biases.
Step-by-step explanation:
The SWOT analysis assesses the Internal Environment for two main things: strengths and weaknesses. These assessments help an organization or individual determine what internal resources and capabilities they can leverage (strengths), as well as areas where they might be at a disadvantage or need improvement (weaknesses).
Strengths of SWOT Analysis
One strength of the SWOT approach is that it provides a clear and structured way to evaluate the internal position of a business. It encourages managers to think critically about their resources and capabilities, therefore helping with strategic planning. Additionally, by systematically assessing these areas, businesses can more effectively align their strategies with their internal environment.
Limits of SWOT Analysis
However, there are limitations to this approach. SWOT alone does not prioritize issues; everything is listed as potentially equal in importance. Also, since it is primarily qualitative, it can be influenced by personal biases. Additionally, this analysis requires up-to-date and accurate information, which can sometimes be difficult to obtain.