BS S7

Question 1

Please define the SWOT Analysis and answer the questions: What is SWOT, When was it established and by who.

Answer 1

1. SWOT Analysis is a useful unique technique for understanding your strengths and weaknesses and for identifying both the Opportunities open to you and the threats you face.
2. Originated by Albert S Humphrey in the 1960s, the tool is as useful now as it was then.
3. Strengths and weaknesses are often internal to your organization, while opportunities and threats generally relate to external forces.

Question 2

Please explain the component strengths and to what it is related? When does a organization have strenghts?

Answer 2

1. You have strengths when your organization have advantages.
2. You do better than other firms.
3. You have the access of unique or low-cost resources than you other competitors.
4. People see in your market your specific strengths.
5. The factors mean that you “get the sale”!
6. You have a unique selling proposition.

When looking at your strengths, think about them in relation to your competitors. For example, if all of your competitors provide high quality products, then a high quality production process is not a strength in your organization’s market, it’s a necessity.

Question 3

Please give examples for weaknesses and explain.

Answer 3

1. What could you improve?
2. What should you avoid?
3. What are people in your market likely to see as weaknesses?
4. What factors lose you sales?
5. Weaknesses helps us to improve

Question 4

Please give examples for useful opportunities and explain:

Answer 4

1. What good opportunities can you spot?
2. What interesting trends are you aware of?
3. There is potential hiding somewhere!

Useful opportunities can come from such things as:

1. Changes in technology and markets on both a broad and narrow scale.
2. Changes in government policy related to your field.
3. Changes in social patterns, population profiles, lifestyle changes, and so on.
4. Local events.

Question 5

Please give Tips on how to use the SWOT Anaylsis:

Answer 5

1. A useful approach when looking at opportunities is to look at your strengths and ask yourself wether these open up any opportunities. Alternatively, look at your weaknesses and ask yourself whether you could open up opportunities by eliminating them.
2. SWOT Analysis is a simple but useful framework for analysing your organizations strengths and weaknesses, and the opportunities and threats that you face. It helps you focus on your strengths, minimize threats, and take the greatest possible advantage of opportunities available to you.
3. It can be used to “kick off” strategy formulation, or in a more sophisticated way as a serious strategy tool. You can also use it to get an understanding of your competitors, which can give you the insights you need to craft a coherent and successful competitive position.

Question 6

Please define the BCG Matrix and answer the questions when, by who.

Answer 6

1. The BCG Matrix is a business method that was created by the Boston Consulting Group in the 1970’s. This business method bases its theory on the life cycle of products.
2. Also known as the Boston Box or Grid, BCG Charts are divided into four types of scenarios, Stars, Cash Cows, Dogs and Questions Marks.

Question 7

Please give explanation on The four elements or types of Scenario. Please enumerate them first.

Answer 7

1. Stars
2. Cash Cow
3. Dogs
4. Question Marks

The stars:

Is the scenario where there is the optimum situation of high growth and share, this method requires an increased investment due to the continuous growth.

Stars require high funding to fight competitions and maintain a growth rate.

The Cash Cow:

Cycle deals with low growth and high share. This scenario requires a low investment, but the growth is very slow.

The Dogs:

Is method is the situation where the growth is low and the market share is low, this is one of the worst situations. In this situation if the products are not delivering the cash then it is best to liquidate.

Question Mark:

The last part of the cycle is the question mark which is high market growth but low shares. In this situation there is a high demand but low returns. It is best to try and increase market share or get it to deliver cash. Questions marks have a potential gain share and become stars.

Question 8

What are the limitations of the BCG Portfolio Matrix?

Answer 8

Limitation:

1. Of this business theory is that it only works with high market share and this is not the only meter for success.
2. Also there are many situations in business where the Dogs can out earn the Cash Cows.
3. The BCG grid may provide the basis for a business development strategy for large business but what about small business?
4. It is possible to have a high market share not have increased profits, or have a low market share and still be profitable.

Question 9

Please define **Strategic fit **in your own words.

Answer 9

1. A situation that occurs when a specific project, target company or product is seen as appropriate with respect to an organizations overall objectives.
2. Most business managers seeking to expand their company’s operation through a merger or acquisition will look for another company that makes a good strategic fit with their own firm.