Question

Which statements about the situation analysis are wrong?

A. Business portfolio analysis is used to make an enterprise's investment, development or withdrawal decisions.

B. SWOT analysis is an analysis that reveals the values ​​of the business's products.

C. SWOT analysis that explores the strengths and weaknesses of the business and opportunities and threats in the external environment.

D. Situation analysis consists of business portfolio analysis and SWOT analysis.

E. Shows where the business's marketing program is, how it works, and what to expect in the future

Answer 1

B. "SWOT analysis is an analysis that reveals the values ​​of the business's products." is the answer.

The above statement is wrong about  situation analysis. Let us discuss each statement in brief one by one.

A. Business portfolio analysis is used to make an enterprise's investment, development or withdrawal decisions.

A business portfolio analysis is essentially a process of looking at a company's products and services and categorizing them based on the basis of their performance. It helps in making decisions regarding investment for a business by considering the performance of the portfolio. Thus we can say that,'Business portfolio analysis is used to make an enterprise's investment, development or withdrawal decisions.'

B. SWOT analysis is an analysis that reveals the values ​​of the business's products.

SWOT analysis helps to identify the strengths of your business which you can use to avail opportunity and weaknesses of your business which you can reduce in order to avoid threats to your business. Thus the statement,'SWOT analysis is an analysis that reveals the values ​​of the business's products.' is irrelevant and is incorrect since SWOT analysis is not directly related to the revealing of value of business's products.

C. SWOT analysis that explores the strengths and weaknesses of the business and opportunities and threats in the external environment.

SWOT stands for Strengths, Weakness, Opportunities and Threats. SWOT analysis helps to scan internal environment in the form of strengths & weakness of business and external environment in the form of opportunities and threats. Thus the statement, 'SWOT analysis that explores the strengths and weaknesses of the business and opportunities and threats in the external environment.'  is correct.

D. Situation analysis consists of business portfolio analysis and SWOT analysis.

Situation analysis uses of collection of tools to analyze an organization's internal and external environment to understand the organization's capabilities, existing & potential customers and business environment. Business portfolio analysis and SWOT analysis are one of the tools of situation analysis. Thus we can say that situation analysis consists of business portfolio analysis and SWOT analysis.

E. Shows where the business's marketing program is, how it works, and what to expect in the future.

Situation analysis involves conducting Customer Analysis through which we understand target market by considering demographics, location, trends, interests,challenges etc. Customer analysis will help you know and predict market trends, customer behaviour and needs.Thus Customer Analysis shows where the business's marketing program is, how it works, and what to expect in the future.