What is the first step when conducting a SWOT analysis?

The first step when conducting a SWOT analysis is to identify the target(s) of the analysis. This step is crucial because it sets the context for the entire process. By clearly defining the focus of the SWOT analysis, whether it is for a specific business unit, product, or the organization as a whole, you can ensure that the subsequent identification of strengths, weaknesses, opportunities, and threats is relevant and aligned with the objectives at hand. Understanding the target helps to tailor the analysis to specific circumstances and ensures that the information gathered is actionable and meaningful in the context of the target's goals and challenges.

Analyzing financial statements, collecting competitor data, and developing strategic recommendations may all play important roles in the broader business planning process, but they follow after the initial identification of the target. Without knowing what you are analyzing, these steps would lack direction and relevance. Thus, identifying the target is essential for a focused and effective SWOT analysis.