Strategic Analysis

Which of the following is false regarding why a SWOT Analysis is used?

• To build on the strengths of a business

• To minimize the weaknesses of a business

• To reduce opportunities available to a business

• To counteract threats to a business

Which of the following could be a strength?

• Weather

• A new international market

• A price that is too high

• The location of a business

Which of the following is true about preparing a SWOT Analysis?

• It should focus on where the organization is today, not where it could be in the future

• A SWOT Analysis is objective

• It should be specific and avoid grey areas

• It should analyze the organization only and ignore the performance of competitors.

Which of the following could be a threat?

• Changes in technology

• A market vacated by an ineffective competitor

• Lack of marketing expertise

Which of the following is NOT part of a company's macro-environment?

• Political and Socio-Cultural factors.

• The company's resource strengths, weaknesses and competitive capabilities.

• Technological factors and Legal conditions.

A company’s strategic plan:

• links the company’s financial targets to control mechanisms.

• maps out the company’s history and performance.

• outlines the competitive moves and approaches to be used in achieving the desired business results.

When buyer price sensitivity is high,

buyers tend to exert pressure on suppliers to keep prices _____________.

• Low

• High

• Price sensitive buyers do not affect

  suppliers’ prices

If a company has sound capital structure, where would this feature would be placed in the SWOT analysis?

• Strength

• Weakness

• Opportunity

• Threat

An organisation with an ‘outside-in’ approach focuses on the needs of the organisation first, and customers and the marketplace second. True or false?

• True

• False

Porter’s five forces is an industry analysis model. The five forces are: inter rivalry of competitors, bargaining power of customers, bargaining power of suppliers, threat of new entrants and what?

• barriers to entry

• threat of competitors

• threat of substitutes

• bargaining power of consumers