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Practical Business Knowledge > Business Strategy > Flashcards

Business Strategy Flashcards

1
Q

What does SWOT stand for?

A

Strengths, Weaknesses, Opportunities, Threats

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2
Q

What is the main purpose of a SWOT analysis?

A

To identify and understand the internal and external factors that can affect an organization.

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3
Q

True or False: Strengths and weaknesses are internal factors in a SWOT analysis.

A

True

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4
Q

Fill in the blank: Opportunities and threats are considered _____ factors in a SWOT analysis.

A

external

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5
Q

What is a competitive advantage?

A

A condition or circumstance that puts a company in a favorable or superior business position.

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6
Q

Name one method to achieve competitive advantage according to Porter’s Five Forces.

A

Cost leadership, differentiation, or focus strategy.

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7
Q

What is the first step in conducting a SWOT analysis?

A

Identify the organization’s strengths.

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8
Q

True or False: Weaknesses are aspects that can help an organization succeed.

A

False

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9
Q

What is an example of a strength in a SWOT analysis?

A

Strong brand reputation.

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10
Q

What type of analysis helps to identify external opportunities?

A

PEST analysis (Political, Economic, Social, Technological).

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11
Q

Fill in the blank: A _____ is a potential challenge that can affect an organization’s success.

A

threat

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12
Q

What is one way to utilize SWOT analysis in strategic planning?

A

To develop strategies that leverage strengths and opportunities while addressing weaknesses and threats.

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13
Q

True or False: Porter’s Five Forces model is used to analyze competitive dynamics within an industry.

A

True

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14
Q

What are the five forces in Porter’s model?

A
  1. Threat of new entrants 2. Bargaining power of suppliers 3. Bargaining power of buyers 4. Threat of substitute products or services 5. Industry rivalry
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15
Q

What does the ‘Threat of New Entrants’ force represent?

A

The potential for new competitors to enter the market and increase competition.

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16
Q

Fill in the blank: The _____ power of suppliers refers to their ability to influence the price and terms of supply.

A

bargaining

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17
Q

What is a key outcome of a SWOT analysis?

A

To inform decision-making and strategic direction.

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18
Q

True or False: A company with high bargaining power of buyers has an advantage in pricing.

A

False

19
Q

What does the term ‘differentiation’ mean in the context of competitive advantage?

A

Offering unique products or services that stand out from competitors.

20
Q

What is a common weakness that organizations might identify in a SWOT analysis?

A

Limited financial resources.

21
Q

Fill in the blank: In a SWOT analysis, identifying _____ can help a company seize market opportunities.

A

opportunities

22
Q

What is an example of a threat in a SWOT analysis?

A

Increasing competition in the market.

23
Q

True or False: A SWOT analysis should be conducted regularly to remain relevant.

A

True

24
Q

What is the significance of ‘Industry Rivalry’ in Porter’s Five Forces?

A

It measures the intensity of competition among existing firms in the industry.

25
Q

What can companies do to mitigate threats identified in a SWOT analysis?

A

Develop contingency plans and strategic responses.

26
Q

Fill in the blank: A focus strategy targets a specific _____ or market segment.

A

niche

27
Q

What is the relationship between SWOT analysis and strategic management?

A

SWOT analysis is a tool used to inform and support strategic management processes.

28
Q

True or False: The opportunities identified in a SWOT analysis are always easy to capitalize on.

A

False

29
Q

What is an example of an opportunity in a SWOT analysis?

A

Emerging markets for expansion.

30
Q

What is the importance of understanding the ‘Bargaining Power of Buyers’?

A

It helps businesses understand how much influence customers have over pricing and terms.

31
Q

Fill in the blank: A company that can lower its costs and maintain quality has a cost _____ advantage.

A

leadership

32
Q

What type of information is typically included in the ‘Weaknesses’ section of a SWOT analysis?

A

Internal factors that can hinder performance.

33
Q

True or False: Porter’s Five Forces framework is only applicable to manufacturing industries.

A

False

34
Q

What does ‘Threat of Substitute Products’ indicate?

A

The likelihood that customers will switch to alternative products or services.

35
Q

What role does market research play in SWOT analysis?

A

It provides data to accurately identify strengths, weaknesses, opportunities, and threats.

36
Q

Fill in the blank: A company’s _____ can be a significant advantage in a competitive market.

A

brand loyalty

37
Q

What is one challenge of conducting a SWOT analysis?

A

Subjectivity in identifying and evaluating factors.

38
Q

True or False: SWOT analysis is a one-time process.

A

False

39
Q

What is a strategic implication of recognizing a company’s weaknesses?

A

To develop improvement plans or resource allocations.

40
Q

Fill in the blank: Understanding _____ is crucial for anticipating future market trends.

A

opportunities

41
Q

What is the primary focus of Porter’s Five Forces?

A

To analyze the competitive environment of an industry.

42
Q

True or False: A strong competitive advantage can lead to higher market share.

A

True

43
Q

What is a potential limitation of SWOT analysis?

A

It may oversimplify complex business environments.

Practical Business Knowledge (13 decks)

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