Lesson 2

Question 1

It refers to professional discipline which focus on identifying business needs and determining solutions to
business problems.

Answer 1

Business Analysis

Question 2

is a framework used to evaluate
a company’s competitive position and to develop strategic planning.

A technique used for assessing the performance, competition, risk, and potential of a business, as
well as part of a business such as a product line or division, an industry, or other entity.

Answer 2

SWOT Analysis

Question 3

was a business and management consultant who specialized in
organizational management and cultural change.

was also the initiator and creator
of the SWOT analysis technique.

Answer 3

Albert Humphrey

Question 4

It describes what an organization excels at and what separates it from the competition, a strong brand, a loyal customer base, a strong balance sheet, unique technology, and so on.

Answer 4

Strengths

Question 5

It stops an organization from performing at its optimum level.

Answer 5

Weaknesses

Question 6

It refers to favorable external factors that could give an organization a competitive advantage.

Answer 6

Opportunities

Question 7

Factors that have the potential to harm an organization.

Answer 7

Threats

Question 8

It helps the organization to identify its power place in the business environment.

This can help them to
understand the strength of an organization’s current and upcoming competitive position.

frequently used to identify an industry’s
structure to determine corporate strategy.

Answer 8

Porter’s Five Forces

Question 9

The Five Forces model is named after

Answer 9

Michael E. Porter

Question 10

Benefits of Porter’s Five Forces

Answer 10

helps you in adjusting the ongoing business strategies

you can pay attention to all-round development of your business

Question 11

is a management method whereby
an organization can assess major external factors
that influence its operation in order to become more
competitive in the market.

Answer 11

PEST/PESTLE Analysis

Question 12

PEST was first introduced under

Answer 12

Harvard professor Francis J. Aguilar. “Scanning the Business Environment,”

Question 13

impact an industry include specific policies and regulations related to
things like taxes, environmental regulation, tariffs, trade policies, labor laws, ease of doing
business, and overall political stability.

Answer 13

Political

Question 14

an impact include inflation, exchange rates (FX), interest
rates, Gross Domestic Product (GDP) growth

Answer 14

Economic

Question 15

impact on an industry refers to trends among people and includes things such as
population growth, demographics (age, gender, etc.), and trends in behavior such as
health, fashion, and social movements.

Answer 15

Social

Question 16

incorporate factors such as advancements and
developments that change the way a business operates and the ways in which people live
their lives (e.g., the advent of the internet).

Answer 16

Technological

Question 17

The process by which companies use to compare their current with their
desired and expected performance.

This analysis is used to determine
whether a company is meeting expectations and using its
resources effectively.

is the means by which a company can recognize
its current state—by measuring time, money, and labor—and
compare it with its target state.

Answer 17

GAP Analysis

Question 18

Four Steps in Gap Analysis:

Answer 18

Defining organizational goals
Benchmarking the current state
Analyzing the gap data, and
Compiling a gap report.

Question 19

is the practice of comparing business
processes and performance metrics to industry bests and best
practices from other companies. It is used to measure performance using
a specific indicator (cost per unit of measure, productivity per unit of
measure, cycle time of x per unit of measure or defects per unit of
measure)

Answer 19

Benchmarking

Question 20

TYPES OF GAP ANALYSIS

Answer 20

Market Gap Analysis
Strategic Gap Analysis
Financial/Profit Gap Analysis
Skill Gap Analysis
Compliance Gap Analysis
Product Development Gap Analysis

Question 21

Also called product gap analysis, entails making considerations about the market
and how customer needs may be going unmet.

This
type of analysis may be performed by external consultants who have more expertise in these areas of
business in which the company may not currently be operating.

Answer 21

Market Gap Analysis

Question 22

Also called performance gap analysis, is a more formal internal review of how a
company is performing. The analysis often entails comparing how a company has done against long-term
benchmarks such as a five-year plan or a strategic plan.

Answer 22

Strategic Gap Analysis

Question 23

A company may choose to directly analyze where its company may be falling short compared
to competitors by looking specifically at financial metrics. This may include pricing comparisons,
margin percentages, overhead costs, revenue per labor, or fixed vs. variable components.

Answer 23

Financial Gap Analysis

Question 24

Any expenses that change based on how much a company produces and sells.

Some of the most common types of variable costs include labor, utility expenses, commissions, and raw materials.

Answer 24

Variable Costs

Question 25

Any expenses that remain the same no matter how much a company produces.

These costs are normally independent of a company’s specific business activities and
include things like rent, property tax, insurance, and depreciation.

Answer 25

Fixed Costs

Question 26

helps determine if there is a shortfall in knowledge and expertise with current personnel.

must clearly define the goals of the
company, then map how current laborers may fit into that design.

may lead to
the recommendation of simply training existing staff to incur new skills or seeking outside
expertise to bring in new personnel.

Answer 26

Skill Gap Analysis

Question 27

evaluates how a company is
faring against a set of external regulations that dictate how something should be getting done.

Answer 27

Compliance Gap Analysis

Question 28

also be performed to analyze which
functions of the products will meet market demand and where the product will fall short.

often associated with the development of software products or items that
take a long time to develop (in which the market demand may have shifted).

Answer 28

Product Development Gap Analysis