Certified Hospitality Manager (CHM) 2025 – 400 Free Practice Questions to Pass the Exam

A SWOT analysis is a strategic planning tool that assists hospitality managers in identifying four key aspects of a business: strengths, weaknesses, opportunities, and threats. This framework enables managers to evaluate internal factors (strengths and weaknesses) alongside external factors (opportunities and threats) that affect their organization.

By assessing strengths, a business can understand what it does well and leverage these advantages to create competitive edges. Identifying weaknesses allows a manager to recognize areas that need improvement to enhance operational efficiency or customer satisfaction. On the external side, examining opportunities helps identify favorable conditions in the market, such as emerging customer trends or new markets to target. Conversely, recognizing threats prepares managers for potential challenges that might harm their business, such as economic downturns or increased competition.

While the economy's impact on pricing, employee satisfaction levels, and customer preferences are important elements within hospitality management, they are more specific concerns that can arise from a broader SWOT analysis. The primary focus of a SWOT analysis, however, is to give a holistic view of both internal and external factors that impact the organization's strategic planning. Therefore, the identification of strengths, weaknesses, opportunities, and threats is the essence of what a SWOT analysis offers in hospitality management.