1 Analysis and Evaluation
1.1 SWOT Analysis
1.1.1 Strengths
• Briefly analyze the strengths the company possesses
• Sample questions to help you analyze that:
o What makes the company better than others (for this mission, in this industry)?
o What actions do they do well?
o What are their competences? What knowledge, skills and attitude do they have that helps them?
1.1.2 Weaknesses
• Briefly analyze the weaknesses the company possesses
• Sample questions to help you analyze that:
o What could the company improve in order to achieve their mission?
o In what ways are they not efficient?
o What don’t they do well?
o Where are they incompetent? What knowledge, skills and attitude are they missing?
o What should they avoid doing?
o Why shouldn’t they undertake this mission?
1.1.3 Opportunities
• Briefly analyze the opportunities the company can explore
• Sample questions to help you analyze that:
o What real opportunities are present today?
o What is going on around them that seems to be useful?
o From which recurring tendencies can they profit and how?
o What could be done today that isn’t being done?
o What is missing in the market?
o Who can support them and how?
1.1.4 Threats
• Briefly analyze the threats the company can be a target of
• Sample questions to help you analyze that:
o What are the negative tendencies in play today?
o What obstacles do they face in your mission right now?
o Who might cause them problems in the future and how?
o What is the competition doing that might cause difficulties for them?
TIP: Do NOT submit a SWOT grid. This section should be a fully written analysis of the strengths, weaknesses, opportunities, and threats faced by the company.
TIP: These analyses should illustrate your ability to analyze and understand a company.
1.2 PEST Analysis
1.2.1 Political Factors
• Briefly analyze the political variables affecting the company
• Sample questions to help you analyze that:
o When is the country’s next local, state, or national election? How could this change government or regional policy?
o Who are the most likely contenders for power? What are their views on business policy, and on other policies that affect your organization?
o Depending on the country, how well developed are property rights and the rule of law, and how widespread are corruption and organized crime? How are these situations likely to change, and how is this likely to affect you?
o Could any pending legislation or taxation changes affect your business, either positively or negatively?
o How will business regulation, along with any planned changes to it, affect your business? And is there a trend towards regulation or deregulation?
o How does government approach corporate policy, corporate social responsibility, environmental issues, and customer protection legislation? What impact does this have, and is it likely to change?
o What is the likely timescale of proposed legislative changes?
o Are there any other political factors that are likely to change?
1.2.2 Economic Factors
• Briefly analyze the economic variables affecting the company
• Sample questions to help you analyze that:
o How stable is the current economy? Is it growing, stagnating, or declining?
o Are key exchange rates stable, or do they tend to vary significantly?
o Are customers’ levels of disposable income rising or falling? How is this likely to change in the next few years?
o What is the unemployment rate? Will it be easy to build a skilled workforce? Or will it be expensive to hire skilled labor?
o Do consumers and businesses have easy access to credit? If not, how will this affect your organization?
o How is globalization affecting the economic environment?
o Are there any other economic factors that you should consider?
1.2.3 Social-Cultural Factors
• Briefly analyze the social-cultural variables affecting the company
• Sample questions to help you analyze that:
o What is the population’s growth rate and age profile? How is this likely to change?
o Are generational shifts in attitude likely to affect what you’re doing?
o What are your society’s levels of health, education, and social mobility? How are these changing, and what impact does this have?
o What employment patterns, job market trends, and attitudes toward work can you observe? Are these different for different age groups?
o What social attitudes and social taboos could affect your business? Have there been recent socio-cultural changes that might affect this?
o How do religious beliefs and lifestyle choices affect the population?
o Are any other socio-cultural factors likely to drive change for your business?
1.2.4 Technological Factors
• Briefly analyze the Technological variables affecting the company
• Sample questions to help you analyze that:
o Are there any new technologies that you could be using?
o Are there any new technologies on the horizon that could radically affect your work or your industry?
o Do any of your competitors have access to new technologies that could redefine their products?
o In which areas do governments and educational institutions focus their research? Is there anything you can do to take advantage of this?
o How have infrastructure changes affected work patterns (for example, levels of remote working)?
o Are there existing technological hubs that you could work with or learn from?
o Are there any other technological factors that you should consider?
1.3 Porter 5 Forces Analysis
1.3.1 Bargaining Power of Suppliers
• Briefly analyze the power that suppliers have over your company
• Sample questions to help you analyze that:
o Examine how many suppliers are in the market?
o Are there a few who control prices?
o Or many so prices are lower?
o Do your suppliers hold the power?
o How easy is it to switch, what’s the cost?
1.3.2 Bargaining Power of Customers
• Briefly analyze the power that customers have over your company
• Sample questions to help you analyze that:
o How powerful are the buyers?
o How many are there?
o Can the buyers get costs down?
o Do they have the power to dictate terms?
1.3.3 Threat of New Entrants
• Briefly analyze how easy is for a new company to appear in this market
• Sample questions to help you analyze that:
o What’s the threat of new businesses starting in this sector?
o How easy is it to start up in this business?
o What are the rules and regulations?
o What finance would be needed to start-up?
o Are there barriers to entry which give you greater power?
1.3.4 Threat of Substitute Products
• Briefly analyze how easy is for a new product that can substitute your product to appear in this market
• Sample questions to help you analyze that:
o How easy is it to find an alternative to this product or service?
o Can it be outsourced? Or automated?
1.3.5 Competitive Rivalry within the industry
• Briefly analyze how competitive the current market is
• Sample questions to help you analyze that:
o What’s the level of competition in this sector?
o What’s the competitor situation? Many competitors and you’re all in a commodity situation or a few?
Note: This is the most important part of the paper and needs in depth critical analysis.
2 Critical Analysis
Company:
o An analysis of your overall insight regarding the position of the company and its potential future over the next 3 to 5 years.
3 Recommendations
• Describe three things that you recommend to this company to improve its business position, daily operations, or strategic growth.