Application of SWOT Analysis

question 133

Multiple Choice

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

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Definitions:

Average Variable Cost

The total variable cost divided by the quantity of output, representing the variable cost per unit of output.

Marginal Product

The additional output resulting from using one more unit of a particular input, holding all other inputs constant.

Marginal Cost

The incremental cost associated with producing an extra unit of a product or service.

Average Total Cost

The total cost of production divided by the number of units produced, representing the cost per unit of output.