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Questions and Answers
What is the primary aim of utilizing strengths while addressing weaknesses?
What is the primary aim of utilizing strengths while addressing weaknesses?
Which phase of the analysis process involves evaluating internal strengths and weaknesses?
Which phase of the analysis process involves evaluating internal strengths and weaknesses?
In the SFA matrix, which factor is NOT considered when assessing the suitability of an option?
In the SFA matrix, which factor is NOT considered when assessing the suitability of an option?
Which of the following is a component of the acceptability phase of the analysis?
Which of the following is a component of the acceptability phase of the analysis?
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What is the outcome of the confrontation matrix in the analysis phase?
What is the outcome of the confrontation matrix in the analysis phase?
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What is the primary purpose of conducting an external analysis?
What is the primary purpose of conducting an external analysis?
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Which of the following is not one of the components of the DESTEP analysis?
Which of the following is not one of the components of the DESTEP analysis?
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Which element is NOT part of the 7S framework?
Which element is NOT part of the 7S framework?
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In a SWOT analysis, what would be considered an external opportunity?
In a SWOT analysis, what would be considered an external opportunity?
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Which aspect of internal analysis assesses the current marketing mix?
Which aspect of internal analysis assesses the current marketing mix?
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Which combination in the confrontation matrix would indicate a strategic advantage?
Which combination in the confrontation matrix would indicate a strategic advantage?
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What does the term 'staff' in the 7S framework refer to?
What does the term 'staff' in the 7S framework refer to?
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What is assessed in the internal analysis under the marketing mix component?
What is assessed in the internal analysis under the marketing mix component?
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Study Notes
External Analysis
- Seek favorable and unfavorable trends in the environment.
- Analyze opportunities and threats for business.
- Areas of focus:
- Consumer needs: changing preferences, new market segments
- Industry trends: developments, technology, suppliers
- Competition: levels, substitutes
- Distribution channels: suppliers, distribution strategies
- MACRO level trends: DESTEP (Demographic, Economic, Social-Cultural, Technological, Ecological, Political-legal)
DESTEP
- Demographic developments: Population changes, demographics, age groups
- Economic developments: Economic growth, inflation, interest rates
- Social-Cultural developments: Cultural shifts, values, lifestyles
- Technological developments: Advancements, innovations, digitalization
- Ecological developments: Environmental issues, sustainability, resource management
- Political-legal developments: Government policies, regulations, legal frameworks
Internal Analysis
- Mission and vision: The organization's purpose and long-term goals.
- Marketing mix: Analyze the current product, pricing, place, promotion, and people aspects.
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7S model (McKinsey): Evaluates organizational effectiveness through:
- Strategy: Clear plan of action?
- Structure: Organizational chart and structure.
- Systems: Routines and workflow processes.
- Skills: Employee capabilities and expertise.
- Staff: Workforce, hiring, retention, policies.
- Style: Leadership approach and organizational culture.
- Shared Values: Core values and beliefs of the organization.
SWOT Analysis
- Internal Factors:
- Strengths: Advantages compared to competitors.
- Weaknesses: Areas where the organization needs improvement.
- External Factors:
- Opportunities: Potential for growth and expansion.
- Threats: Challenges and risks from the external environment.
Confrontation Matrix
- Combines strengths, weaknesses, opportunities, and threats to identify strategic options.
- Creates a visual representation of how external factors can be addressed with internal capabilities.
Strategic Options
- Develop action plans based on strengths, weaknesses, opportunities, and threats.
- Aim to leverage strengths, improve weaknesses, and capitalize on opportunities while mitigating threats.
Prioritizing Strategic Options
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SFA Matrix: Evaluates strategic options based on suitability, feasibility, and acceptability.
- Suitability: Does the option address the problem, capitalize on opportunities, minimize threats?
- Feasibility: Is it financially, organizationally, economically, technologically, socially, culturally, legally, ethically feasible?
- Acceptability: Is it profitable, does it have acceptable financial risk, and is it acceptable to stakeholders?
Assignment for the Week
- Conduct an external analysis.
- Conduct an internal analysis.
- Perform a SWOT analysis.
- Create a confrontation matrix and identify strategic options.
- Conduct a feasibility analysis using the SFA matrix.
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Description
Test your knowledge on the external analysis of the business environment, focusing on opportunities and threats. This quiz covers key areas like consumer needs, industry trends, competition, distribution channels, and DESTEP analysis. Strengthen your understanding of how various macro-level trends impact business strategies.
