Write short note on SWOT analysis.

(a) SWOT analysis is a tool used by organizations for evolving strategic options for the future. The term SWOT refers to the analysis of strengths, weaknesses, opportunities and threats facing a company. Strengths and weaknesses are identified in the internal environment, whereas opportunities and threats are located in the external environment. (a) Strength: Strength is an inherent capability of the organization which it can use to gain strategic advantage over its competitor. (b) Weakness: A weakness is an inherent limitation or constraint of the organisation which creates strategic disadvantage to it. (c) Opportunity: An opportunity is a favourable condition in the external environment which enables it to strengthen its position. (d) Threat: An unfavourable condition in the external environment which causes a risk for, or damage to the organisation's position. The major purpose of SWOT analysis is to enable the management to create a firm-specific business model that will best align, fit or match organisational resources and capabilities to the demands of the environment in which it operates.