SWOT Analysis

question 130

Multiple Choice

SWOT analysis

• A) is a way to measure whether a company's value chain is longer or shorter than the chains of key rivals.
• B) is a tool for benchmarking whether a firm's strategy is closely matched to industry key success factors.
• C) reveals whether a company is competitively stronger than its closest rivals.
• D) provides a good overview of whether a company's situation is fundamentally healthy or unhealthy.
• E) identifies the reasons why a company's strategy is or is not working very well.

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Definitions:

Maximize Profits

The process of increasing the difference between total revenue and total costs to reach the highest possible financial gain.

Identical Costs

Costs that are the same in value or magnitude for different firms or production processes.

Price Elasticity

An economic measure of the change in the quantity demanded or purchased of a product in relation to its price change.

Marginal Cost

The cost of producing one additional unit of a good or service, a concept that is crucial in economic decision-making and pricing strategies.