Analysis Tools Flashcards
(38 cards)
What is the purpose of business analysis?
Evaluates performance and helps shape the future direction of the organization.
Name three business analysis tools.
- SWOT
- Porter’s Five Forces
- PESTEL
What is the overall purpose of using analysis tools?
Efficiency and organization.
How does business analysis help in project definition?
Evaluates all aspects of a project to assess viability.
What role does business analysis play in stakeholder communication?
Facilitates free flow of ideas and feedback.
What does SWOT stand for?
- Strengths
- Weaknesses
- Opportunities
- Threats
What does SWOT analysis assess?
Internal and external forces that may create opportunities or risks for an organization.
Define ‘Strengths’ in SWOT analysis.
Internal factors that support a successful outcome.
Define ‘Weaknesses’ in SWOT analysis.
Internal factors that work against a successful outcome.
Define ‘Opportunities’ in SWOT analysis.
External factors that management can seize to improve business performance.
Define ‘Threats’ in SWOT analysis.
External factors that endanger the operations of a firm.
What are some examples of opportunities in SWOT analysis?
- Good brand image
- Advanced technology
- Multiple income streams
- Expansion into new markets
- Possible developments of new products
What are some examples of weaknesses in SWOT analysis?
- Poor customer care service
- Poor reputation
- Lack of innovation
What are some examples of threats in SWOT analysis?
- Increased competition
- New products developed by competitors
- Changes in regulations
What is the application of SWOT analysis?
Supports strategic planning and risk management in the organization.
List the steps to conduct a SWOT analysis.
- Define your subject
- List strengths
- Identify weaknesses
- Recognize available opportunities
- Understand potential threats
- Create a SWOT analysis framework
- Review the SWOT analysis framework
- Make conclusions
What is a limitation of SWOT analysis?
May ignore overlaps and interactions between strengths, weaknesses, opportunities, and threats.
What is Porter’s Five Forces model used for?
Identifies and analyzes five competitive forces that shape every industry.
Name the five forces in Porter’s Five Forces model.
- Threat of new entrants
- Buyer power
- Supplier power
- Threat of substitutes
- Industry rivalry
What does the threat of new entrants examine?
How easy or difficult it is for competitors to join the industry.
What are barriers to entry?
- Government policies
- Economies of scale
- Patents
- Capital requirements
- Access to inputs
What does buyer power refer to?
The ability that buyers have to drive prices lower.
What factors affect buyer power?
- Number of buyers
- Significance of each buyer
- Cost of finding new buyers
What does supplier power address?
How easily suppliers can drive up the cost of inputs.
