Business theme 3 Flashcards
What is SWOT analysis
a strategy used to evaluate a company’s competitive position and to develop strategic planning.
what does SWOT stand for ?
Strengths
Weaknesses
Opportunities
Threats
What is the Boston Matrix ?
Graphical representation of a companies products and services to help the company decide what it should kept, sell and invest more in
What are the 4 elements of the Boston matrix ?
-star
-question mark
-cash cow
-dogs
What does the Boston matrix measure ?
Market growth and market share
2 strengths of SWOT ?
-enhanced self awareness
-identification of opportunities
-resource optimization
-competitive advantage
2 limitations of SWOT ?
-can be biased assessment of strengths
-can be time consuming
-vulnerable to blind spots within the business
2 strengths of Boston matrix ?
-identify opportunities
-balance business portfolio
-helps allocate resources efficiently
-simplifies decision making
2 limitations of Boston Matrix ?
-only looks at impacts of market share and growth to define probability
-oversimplifies so other critical factors are ignored
-ignores external factors like economic trends
-encourages short term thinking, EG cash cows.
What is a mission statement ?
Outlines a businesses purpose, values and key aims in a clear way.
what is an external influence ?
A factor beyond a firms control that can affect its performance
what is PESTLE analysis in business ?
helps the business identify external macro factors that will impact the company.
What does PESTLE stand for ?
Political, economic, socio-cultural, Technological, legal, Environmental
2 Benifits of Pestle anaylisis
-informed decision making
-market understanding
-risk management
=adaptability
2 limitations of pestle analysis
-time consuming
-lack of prioritization
-rapidly changing factors
