Internal and External Analyses  Strategic Planning

1. A company is experiencing declining sales due to new competitors entering the market. How should this be classified in a SWOT analysis?

• A. Strength – because it pushes the company to innovate

• B. Weakness – because the company is losing revenue

• C. Opportunity – because competition can lead to collaboration

• D. Threat – because it endangers the company’s market position

2. A business discovers that its employees are highly skilled in digital marketing. How should this be classified in a SWOT analysis?

• A. Strength – because it gives the company a competitive advantage

• B. Weakness – because it increases operational costs in the business marketing

• C. Opportunity – because it allows outsourcing to competitors who are benchmarking

• D. Threat – because digital trends change frequently

3. Which of the following best illustrates the relationship between SWOT analysis and strategic planning?

• A. SWOT analysis is performed after strategic planning to confirm its accuracy.

• B. Strategic planning follows SWOT analysis to align goals with internal and external factors.

• C. Strategic planning replaces SWOT analysis as it is a more comprehensive tool.

• D. SWOT analysis and strategic planning are unrelated since one is external and the other is internal.

4. If a company has strong brand recognition but faces declining customer trust due to poor service, how should this be addressed in strategic planning?

• A. Leverage brand strength while improving service quality to rebuild trust.

• B. Ignore the issue because brand recognition will sustain customer loyalty.

• C. Focus on reducing costs rather than service quality.

• D. Abandon brand-building efforts and shift entirely to damage control.

5. Which external factor in a PESTLE analysis would be most relevant for a company considering expansion into international markets?

• A. Organizational culture

• B. Supply chain logistics

• C. Political stability in target markets

• D. Employee training programs

6. A company wants to invest in AI-driven customer service to improve efficiency. What type of factor would this be in a SWOT analysis?

• A. Strength – if the company already has the technology to implement AI

• B. Weakness – if the company lacks the expertise to manage AI

• C. Opportunity – if AI adoption is an emerging trend in the industry

• D. Threat – if AI is expensive and unreliable

7. How can a business turn a weakness into a strategic opportunity?

• A. By ignoring it and focusing only on strengths as this is pivotal in the growth of the business

• B. By outsourcing all internal operations to reduce risk to mitigate whatever inconsistencies

• C. By investing in training, technology, or partnerships to improve the weak area

• D. By reclassifying it as a strength to maintain positive public perception

8. What is the key advantage of using the Balanced Scorecard in strategic planning?

• A. It focuses on financial performance of the business that is the source of production of goods and services.

• B. It considers multiple perspectives such as financial, customer, internal processes, and learning & growth.

• C. It replaces SWOT analysis as a superior tool for it encompasses the vital elements both internal and external factors.

• D. It eliminates the need for performance measurement.

9. If a company's supply chain is disrupted due to geopolitical tensions, which strategic approach is most effective?

• A. Conduct a new SWOT analysis and explore alternative suppliers or markets.

• B. Ignore the issue and assume the situation will resolve itself.

• C. Reduce investment in logistics and focus only on marketing.

• D. Cut employee salaries to compensate for supply chain losses.

10. Why is scenario planning important in strategic decision-making?

• D. It focuses on internal company operations as the main basis of future growth and development.

• B. It guarantees that a company will always succeed in any situation even during times of crisis.

• C. It eliminates the need for SWOT analysis.

• D. It prepares businesses for multiple future possibilities, reducing uncertainty.