SWOT Analysis (Scenario) Terri Has Been Asked to Review Her Company's Strategy in Company's

question 72

Multiple Choice

SWOT Analysis (Scenario)
Terri has been asked to review her company's strategy in the cosmetics industry. Top management wants to ensure that they are aware of emerging trends and changes. Terri began reviewing a list of factors in her mind. Recently, there has been some negative publicity about cosmetics testing on animals; an industry practice that has become very controversial and increasingly unacceptable to consumers. The laboratory animals at Terri's company are well treated, but they are still used to test new products. On a positive note, industry-wide sales are up 10 percent. Women are buying more cosmetics in general, which is good news for the company. Another positive factor is their personnel. They have many good people working in the company, particularly in research and development where the expertise is exceptional. The only other negative factor noted by Terri was that last year's advertising campaign had not achieved the desired results. Something needed to be done in that department. Terri began to compile her report.
-The failure of the advertising campaign would be classified as a(n) ________.

• A)question mark
• B)weakness
• C)opportunity
• D)threat

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing ownership interest.

Corporate Policies

Guidelines and rules established by a corporation to govern its actions and ensure compliance with legal and ethical standards.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make strategic decisions for a corporation.

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and engage in business and legal activities.