SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environment opportunities and Threats facing that firm. SWOT analysis is a historically popular technique through which managers create a quick overview of a company’s situation. It is based on the assumption that an effective strategy derives from a sound fit between a firms internal resources and its external situation. A good fit maximizes a firms strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has sound, insightful implications for the design of a successful strategy.
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The stars are business in rapidly growing markets with large market shares.
- The Nature of Ethics in Business
Central to the belief that companies should be operated in a socially responsive way for the benefit of all stakeholders is the belief that managers will behave in an ethical manner. The term ethics refers to the moral principles that reflect society’s beliefs about the actions of an individual or a group that are right and wrong.
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- Powerful Buyers
Customers likewise can force down prices,demand higher quality or more service,and play competitors off against each other- all at the expense of industry profits . A buyer group is powerful if It is concentrated or purchases in large volumes. Large volumes buyers are particularly potent forces if heavy fixed costs characterize the industry as they do in metal containers, corn refining, and bulk chemicals, for example-which raise the stakes to keep capacity filled.
- Social responsiveness
A firm’s engaging in social actions in response to some popular social need, is called social responsiveness.