Strategic Analysis

Which one of the following statement is correct?

• SWOT analysis is a technique used to take important business decisions

• SWOT analysis helps managers decide 'where the business is now'

• SWOT analysis sets business objectives for the future

• SWOT analysis considers only the external environment of business

Which one of the following statements is correct?

• PEST analysis is an internal audit of a business's current strengths and weaknesses

• PEST analysis is sufficient to allow managers to make important strategic decisions

• PEST analysis outlines some important external influences on a business

• PEST analysis assesses the performance of each of a business's products

One of the uses of the Boston Matrix is:

• to indicate strategic decisions that could be taken with the business product portfolio

• to indicate which products are profitable and which are not

• to increase the motivation of both managers and workers

• to identify the level f competitive rivalry that exist in each of the markets the firms operates in

Porter's Five Forces analysis aims to help managers:

• identify the market shares and market growth in each of the markets a business operates in

• analyse the performance and current market position of existing products

• analyse, for each business unit or division, the level of competitive rivalry

• choose which strategies should be adopted to improve the power of a business

According to Porter's Five Forces analysis, competitive rivalry depends on:

• supplier power, firm's market power, barriers to entry and buyer power

• supplier power, buyer power, barriers to entry and threat of substitutes

• threat of substitutes, threats from suppliers, buyer power, barriers to competition

• firm's market power, consumer power, supplier power, threat of substitutes

A statement of the business's core purpose and focus, phrased in a way to motivate employees and to stimulate interest by outside group is known as___

• Vision statement

• Mission statement

• Business analysis

• Business Strategic

According to Hamel and Prahalad, a core competence will :

• offer a business a competitive advantage if it is easy for the firms to copy

• increase the firm's competitive advantage if it can develop core products from it

• increase competitions as the business cannot differentiate itself form rivals

• Only exist if it can be used to develop a single differentiated prodcut

Which one is the uses of Boston Matrix analysis?

• It assumes that high market shares are always more profitable than low market shares

• Encourages managers to take decisions about developing new products, for example, to replace a 'dog'

• It cannot forecast what might happen with each product - other information might be needed, such as market research

Which ONE is the benefit of SWOT analysis?

• It is often over simplified

• Inexpensive, it usually undertaken by the business managers

• It is often subjective

• Different weights might be applied to the various issues identified by different managers

PEST analysis give benefit such as___

• Provide an understanding of wider business environment

• Only considers the external environment

• A list of points needs further critical analysis

• May need to be updated regularly given the pace of external environment