Entity/Environment Relationship Analysis

Question 1

Identify 5 factors that might constitute external threats to an entity in a market.

Answer 1

New substitute products or services;
Changes in customer preferences;
Increases in legal or regulatory restrictions;
Increases in international trade barriers (quotas, tariffs, etc.);
Union demands.

Question 2

Identify the 4 categories of factors that should be considered in a strengths, weaknesses, opportunities, and threats analysis (SWOT-type analysis) of the relationship between an entity and its environment.

Answer 2

Strengths of the entity;
Weaknesses of the entity;
Opportunities in the environment (market);
Threats in the environment (market).

Question 3

Identify 5 factors that might constitute strengths which provide an entity a relative competitive advantage in its market.

Answer 3

Ownership of patents, copyrights, etc.;
Favorable reputation;
Proprietary processes, including those that give cost advantage;
Exclusive or preferential access to natural resources/commodities;
Desirable location.

Question 4

Identify 4 factors that might constitute opportunities for an entity in a market.

Answer 4

Unmet market needs (demand);
Development or employment of new technology/processes;
Reduction in legal or regulatory restrictions;
Reduction of international trade barriers (quotas, tariffs, etc.).

Question 5

SWOT analysis facilitates matching an entity’s strengths to the ___ ___ in which it operates.

Answer 5

competitive environment

Question 6

___, in a SWOT analysis, are the resources and capabilities that provide the entity a relative competitive advantage in the market

Answer 6

Strengths

Question 7

___, in a SWOT analysis, are the shortcomings of an entity that place the entity at a relative competitive disadvantage in the market.

Answer 7

Weaknesses

Question 8

___, in a SWOT analysis, are the chances to benefit from external new or unmet demand, or from markets which provide the possibility for profit, growth or other desired outcomes

Answer 8

Opportunities

Question 9

___, in a SWOT analysis, are the chance of adverse consequence to the entity as a result of external forces and might include

Answer 9

Threats

Question 10

Using the SWOT matrix, ___ ___ would utilize the entity’s strengths to take advantage of opportunities in the environment.

Answer 10

S/O strategies

Question 11

Using the SWOT matrix, ___ ___ would pursue opportunities to overcome weaknesses.

Answer 11

W/O strategies

Question 12

Using the SWOT matrix,___ ___ would utilize the entity’s strengths to reduce the entity’s susceptibility to external threats.

Answer 12

S/T strategies

Question 13

Using the SWOT matrix,___ ___ would pursue ways to prevent the entity’s weaknesses from being overcome by external threats.

Answer 13

W/T strategies

Question 14

Reduction in international trade barriers may offer ___ to an entity.

Answer 14

opportunities

Question 15

A ___ ___ shows the relationships between an entity’s strengths and weaknesses and the opportunities and threats in its environment.

Answer 15

SWOT matrix

Question 16

An operating cost advantage would be a ___ of an entity.

Answer 16

strength

Question 17

___ ___ is directly concerned with the relationship between an entity (its strengths and weaknesses) and its environment (the opportunities and threats).

Answer 17

SWOT analysis

Question 18

Is SWOT analysis concerned with external environment, internal characteristics, or both?

Answer 18

Both! SWOT is concerned with both the external environment of an entity (the opportunities and threats) and its internal characteristics (strengths and weaknesses).

Question 19

The possibility of new regulations in the operating environment would be considered a___ to the entity.

Answer 19

threat

Question 20

Significant unmet needs in the market would be a(n) ___ to the entity.

Answer 20

opportunity