Principles of Management

Question 1

What does SWOT stand for?

Answer 1

Strengths
Weaknesses
Opportunities
Threats

Question 2

In a SWOT analysis, what’s the difference between the strengths/weaknesses part and the opportunities/threats part?

Answer 2

The strengths/weaknesses are internal

The opportunities/threats are external

Question 3

What does PESTLE stand for?

Answer 3

Political
Economic
Social
Tech
Environment
Legal

Question 4

What are Porter’s five forces?

Answer 4

Competitive rivalry
Threat of new entrants
Threat of substitution
Bargaining power of suppliers
Bargaining power of customers

Question 5

What are Porter’s ‘Generic Strategies’?

Answer 5

Cost leadership
Product differentiation
Focus ehancement can be added to either of the above

Question 6

What was Porter’s warning about his generic strategies?

Answer 6

Don’t apply both differentiation AND cost. If you do, you’ll get stuck trying to be all things to all people.

However, focus can be used in conjunction with either.