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Simple to understand, and blessed with a catchy acronym, SWOT analysis is widely used as a tool for the evaluation of a firm's position. Managers not only believe that it is useful ? research in both the UK and the USA has found that they also think of it as having a strong foundation in theory and empirical research.
In this, however, they are mistaken. Nobody really knows who invented SWOT analysis, though it was certainly being used by Harvard Business School academics during the 1960s. There is no piece of underlying theory that shows how, by examining strengths, weaknesses, opportunities and threats, and only those four factors, we can arrive at a complete appraisal of an organisation's position...
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