Entity/Environment Relationship Analysis

Question 1

Identify the four categories of factors that should be considered in a SWOT-type analysis of the relationship between an entity and its environment.

Answer 1

1. Strengths of the entity
2. Weaknesses of the entity
3. Opportunities in the environment (market)
4. Threats in the environment (market)

Question 2

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

Answer 2

1. Ownership of patents, copyrights, and so on
2. Favorable reputation
3. Proprietary processes, including those that give cost advantage
4. Exclusive or preferential access to natural resources/commodities
5. Desirable location

Question 3

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

Answer 3

1. Unmet market needs (demand)
2. Development or employment of new technology/processes
3. Reduction in legal or regulatory restrictions
4. Reduction of international trade barriers

Question 4

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

Answer 4

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