What does a SWOT analysis focus on?

A SWOT analysis focuses on assessing an organization's current situation by examining its internal strengths and weaknesses, as well as the external opportunities and threats it faces. This analytical tool is primarily utilized to identify both the current state of an organization and its potential for future growth or improvement.

The strengths and weaknesses are internal factors, while opportunities and threats are external factors, allowing organizations to create strategic plans that leverage their strengths and opportunities while addressing their weaknesses and threats. Therefore, the correct focus of a SWOT analysis is fundamentally on the current state rather than the future state, budget processes, or anything else. It provides a snapshot that can inform future strategies but does not predict them; instead, it relies on the present circumstances of the organization.