ANALYZING THE MARKET

Question 1

SWOT analysis was created in the _____

Answer 1

1960s

Question 2

who created SWOT ANALYSIS?

Answer 2

1. Edmund P. Learned
2. C. Roland Christensen
3. Kenneth Andrews
4. William D. Book

Question 3

their book titled, “_______”

Answer 3

“Business Policy, Text and Cases.”

Question 4

SWOT stands for

Answer 4

Strengths, Weaknesses, Opportunities, and Threats,

Question 5

is an analytical framework that can help a company meet its challenges and identify new markets.

Answer 5

SWOT ANALYSIS

Question 6

These refer to the internal factors, and these are the resources and experiences readily available to the business proponent.

Answer 6

STRENGTHS AND WEAKNESSES

Question 7

FINANCIAL RESOURCES

Answer 7

money & sources of funds for investment

Question 8

PHYSICAL RESOURCES

Answer 8

1. companies location
2. facilities
3. machinery
4. equipment

Question 9

HUMAN RESOURCES

Answer 9

1. employees

Question 10

NATURAL RESOURCES

Answer 10

1. trademark
2. patents
3. copyrights

Question 11

CURRENT PROCESSES

Answer 11

1. employee programs
2. department hierarchy
3. software systems
4. sales and distribution capabilities
5. marketing programs

Question 12

These are the external forces that affect a company, an organization, an individual, and those outside their control.

Answer 12

OPPORTUNITIES & THREATS

Question 13

Economic trends

Answer 13

1. local, national, international financial trends
2. developments in the country’s stock market
3. reforms in the banking system,
4. growth in the Gross Domestic Product (GDP);

Question 14

MARKET TRENDS

Answer 14

1. new products or technology or evolving buyer’s profiles,

Question 15

National and local laws and statutes

Answer 15

1. political, environmental, and economic regulations;

Question 16

Demographic characteristics of the target market

Answer 16

1. age,
   2.the gender,
2. the culture of the customers;

Question 17

Relationships with suppliers and co-owners; and competitive ideas

Answer 17

OPPORTUNITIES AND THREATS

Question 18

Before an owner can plan for its business’ future, he/she must FIRST evaluate the business by identifying and analyzing INTERNAL AND EXTERNAL RESOURCES AND THREATS

Answer 18

TRUE

Question 19

When drafting a SWOT analysis, individuals typically create a table split into FOUR columns to list each impacting element side by side for comparison.

Answer 19

TRUE

Question 20

Strengths and weaknesses WON’T typically MATCH listed opportunities and threats verbatim, although they should correlate, since they are ultimately TIED TOGETHER

Answer 20

TRUE

Question 21

4 STRENGTHS

Answer 21

1. Government Incentives
2. Low capital requirements
3. Market acceptance
4. Experienced leaders

Question 22

4 WEAKNESSES

Answer 22

1. Difficulty of organization
2. Costly set-up
3. Possible pollution problems
4. Lack of training of workers

Question 23

3 OPPORTUNITIES

Answer 23

1. Project may replace imported good available in the market
2. Will improve employee welfare
3. Improved company reputation

Question 24

3 THREATS

Answer 24

1. Entry of competitors
2. Time consuming production processes
3. Opposition from residents in the community

Question 25

THREAT OF NEW ENTRY

Answer 25

1. Time and cost of entry 2. Specialist knowledge 3. Economies of scale 4. Cost advantages 5. Technology protection 6. Barriers to entry

Question 26

SUPPLIER POWER

Answer 26

1. Number of suppliers 2. Size of suppliers 3. Uniqueness of service 4. Your ability to substitute 5. Cost of changing

Question 27

THREATS OF SUBSTITUTION

Answer 27

1. Substitute performance 2. Cost of change

Question 28

COMPETITIVE RIVALRY

Answer 28

1. Number of competitors 2. Quality differences 3. Other differences 4. Switching costs 5. Customer loyalty

Question 29

BUYER POWER

Answer 29

1. Number of customers 2. Size of each order 3. Differences between competitors 4. Price sensitivity 5. Ability to substitute 6. Cost of changing

Question 30

Five Forces of Competitive Analysis was developed in _______

Answer 30

1979

Question 31

Who created Five Forces of Competitive Analysis?

Answer 31

by Michael E. Porter of Harvard Business School

Question 32

as a framework or a guide for assessing and evaluating the competitive strength and position of a business organization.

Answer 32

Five Forces of Competitive Analysis

Question 33

THE FIVE FORCES

Answer 33

1. Supplier Power 2. Buyer Power 3. Number of Competitors/ Competitive Rivalry 4. Possibility of substitution 5. Possibility of new entrants

Question 34

SIMPLE RULES FOR SUCCESSFUL SWOT ANALYSIS

Answer 34

1. Be realistic about the strengths and weaknesses of your business when conducting SWOT analysis. 2. SWOT analysis should distinguish between where your business is today, and where it could be in the future. 3. SWOT should always be specific. Avoid any gray areas. 4. Always apply SWOT in relation to your competition, i.e., better than or worse than your competition. 5. Keep your SWOT short and simple. Avoid complexity and over analysis. 6. SWOT is subjective.