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.
-In formulating the company's report which analysis of the following would be included in an environmental scan?
A)opportunities and threats
B)strengths and weaknesses
C)weaknesses and threats
D)current business strategies and objectives

Question

Quizplus · Accepted Answer

An environmental scan in the context of a SWOT analysis involves looking at external factors that could impact the business, which are categorized as opportunities (such as the industry-wide increase in sales) and threats (like negative publicity from animal testing). Strengths and weaknesses are internal factors, while current business strategies and objectives are not directly related to an environmental scan but rather to internal strategic planning.