BUSINESS ANALYSIS MODELS (RMS 222) 22/03/16

 

Environmental Analysis - Study of the effects of the environment where an entrepreneur in perform his/her business.

Factors

S - Strength - Internal Factor. Competitive advantage

W - Weakness - Internal Factor

O - Opportunity - External Factor

T - Threats -  External Factor

The main advantage of the analysis is to come up with a strategy that can help you move from one stage to another.

Strengths

• Good brand image - You have to to make a good image to your customers, this include reputation
• Well-known name - Your 
• Good reputation - Your company has to make good reputation by the service offered by your company and trustworthy
• Cost advantage in production - Look for raw materials froma source that has little cost so that when 
• High market share - The percent of customers you serve from the total number of customers in the market segment.
• Confidence in the market - 
• Customer loyalty and repeat business
• More advanced technology and R & D

Weakness

• Ineffective production
• Falling profit
• Falling sales of the product
• declining age of the life cycle of a product
• Poor reputation
• Lack of innovation and change
• Lack of adequate capital or having some financial problems
• Customers losing confidence or increasing complaints on the business
• Poor management or inefficient organizational structure.

Opportunities

• Possible development of new product
• Expansion into new markets
• Development of global brand
• Joint-development with other companies
• Possible growing demands for a product in the market
• Possible government policies ecouranging the growth of the business and its certain products
• New sources of profit or income

Threats

• Change in law and regulations which may prohibit or affect the production of a business
• Growing competition from local companies
• Increasing competition from foreign competitors
• New products developed by other companies which may replace the product of the business
• Marketing activities or strategies which will be implemented by competitors.

As tyoed By: Okiki