Application of SWOT Analysis
Terry had been told to reexamine the strategic niche their company held in the cosmetic industry. Top management did not want the company caught unaware of any changes occurring. Terry began reviewing a list of factors in his mind. There had been some negative publicity lately due to cosmetic testing on animals. The animals were well treated, but they were used to test new products. Positively, sales industry- wide was up 10%. Women were buying more cosmetics in general, which was nothing but good for the company. Another positive factor was their personnel. They had good people working in the company, particularly in research and development. The only other negative Terry could find was that the advertising campaign that was begun last year had not shown the results they had hoped for. Something needed to be done in that department. Terry began to compile his report.
-Which analysis would assist Terry to identify a strategic niche that the company could exploit?
A)SWOT analysis
B)MBWA
C)MBO
D)SWAT analysis

Question

Quizplus · Accepted Answer

SWOT analysis is a strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning. In this scenario, Terry is evaluating internal factors (personnel strengths, negative publicity as a weakness) and external factors (industry sales increase as an opportunity, ineffective advertising as a threat), which aligns with the SWOT analysis framework.