Lesson 2 Flashcards
(39 cards)
It refers to professional discipline which focus on identifying business needs and determining solutions to
business problems.
Business Analysis
___________ may include a software-systems development component, process improvements, or organizational changes, and may involve extensive analysis, strategic planning and policy
development.
Solutions
framework used to evaluate a company’s competitive position and to develop strategic planning.
SWOT (strengths, weaknesses, opportunities, and threats) analysis
business and management consultant who specialized in
organizational management and cultural change.
the initiator and creator
of the SWOT analysis technique.
Albert Humphrey
Components of SWOT Analysis:
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
It describes what an organization excels at and what separates it from the competition, a strong brand, loyal customer base, a strong balance sheet, unique technology, and so on.
STRENGTHS
It stops an organization from performing at its optimum level. They are areas where the
business needs to improve to remain competitive: a weak brand, higher-than-average
turnover, high levels of debt, an inadequate supply chain, or lack of capital.
WEAKNESSES
It refers to favorable external factors that could give an organization a competitive advantage.
OPPORTUNITIES
Factors that have the potential to harm an organization.
THREATS
a threat to a wheat-producing company, as it may destroy or reduce the crop yield.
drought
Analysts present a SWOT analysis as a square segmented into four quadrants, each dedicated to an
element of SWOT.
often laid out with the internal factors on the top row and the external factors on the
bottom row.
SWOT Table
Procedures in SWOT Analysis:
Determine your objective.
Gather resources
Compile ideas
Refine findings
Develop the strategy
Benefits of SWOT Analysis:
It makes complex problems more manageable.
It requires external consider. It covers both the internal factors a company can manage and the external
factors that may be more difficult to control.
It can be applied to almost every business question.
It helps to leverages different data sources.
May not be overly costly to prepare.
It helps the organization to identify their power place in the business environment. This can help them to understand the strength of an organization’s current and upcoming competitive position.
It identifies and analyzes five competitive forces that shape every industry and helps determine an
industry’s weaknesses and strengths. frequently used to identify an industry’s
structure to determine corporate strategy.
Porter’s Five Forces
The Five Forces model:
Threats of new entrants
Threats of substitution
Competetive of rivalry
Bargaining power of buyers
Bargaining power of suppliers
When to perform Porter’s Five Forces?
When you want to keep a close watch on your rivals.
When you want to maximize your profitability.
For a complete knowledge of the environment and industry.
To make new business strategies.
To understand whether new products or services are potentially profitable.
To find out and improve weaknesses and to avoid mistakes.
Benefits of Porter’s Five Forces
Helps you in adjusting the ongoing business strategies.
You can pay attention to the all-around development of your business.
management method whereby
an organization can assess major external factors
that influence its operation in order to become more
competitive in the market.
PEST Analysis (political, economic, social and
technological)
A popular variation on the PEST Analysis format,
especially in the U.K., which includes the additional
aspects of Legal and Environmental.
PESTLE strategic planning approach
PEST quirky acronym used today:
Political
Economic
Social
Technological
impact an industry include specific policies and regulations related to things like taxes, environmental regulation, tariffs, trade policies, labor laws, ease of doing
business, and overall political stability.
Political
impact include inflation, exchange rates (FX), interest
rates, Gross Domestic Product (GDP) growth rates, conditions in the capital markets (ability
to access capital), etc.
Economic
impact on an industry refers to trends among people and includes things such as
population growth, demographics (age, gender, etc.), and trends in behavior such as
health, fashion, and social movements.
Social
incorporate factors such as advancements and
developments that change the way a business operates and the ways in which people live
their lives (e.g., the advent of the internet).
Technological
