Question

The evaluation of a firm's strengths, weaknesses, opportunities, and threats is called a SWOT analysis. A SWOT analysis can be a valuable tool in the development of a marketing plan, but too often the SWOT analysis is not well thought out and proves to be an ineffective waste of time. Perhaps the most common mistake when conducting a SWOT analysis is the failure to separate internal issues from external issues. The strengths and weaknesses aspects of the SWOT analysis focus on internal capabilities. The opportunities and threats aspects focus on the external environment. Select the most appropriate category for the descriptors below.1. Post office closings2. JPM has the superior information technology infrastructure3. Increasing demand for international packages4. JPM has an excellent workforce and human resource department5. Potential global economic recession6. JPM has increasing labor costs7. JPM has less fuel-efficient planes8. Increasing fuel costs due to turmoil in the Middle East

Answer 1

Answer: Please refer to Explanation

Step-by-step explanation:

SWOT ANALYSIS is indeed a very useful matrix for evaluating a firm's strong points.

The Strengths and Weaknesses portion focus on the internal Environment with the Strengths looking at what the company does better than other companies and has a competitive advantage in while weaknesses look at where the company is lacking.

The Threats and Opportunities focus on the External Environment. The Threats refer to any and every potential source of negative effects on the company while Opportunities are the potential chances that a company can capitalise on to make themselves more profitable.

Classifying the above,

1. Post office closings. OPPORTUNITIES

This is because JPM as a Delivery Service can then take over the customers that can no longer use the closed Post Offices.

2. JPM has the superior information technology infrastructure. STRENGTHS.

This is an area that JPM excels in making it a strength.

3. Increasing demand for international packages. OPPORTUNITIES.

This is a chance for JPM to grow as they can capitalise on this increased demand to increase profitability.

4. JPM has an excellent workforce and human resource department. STRENGTH.

JPM has a strength in this area because this is something that they are good at.

5. Potential global economic recession. THREATS.

This is a Threat to JPM as it could potentially affect their business negatively.

6. JPM has increasing labor costs. WEAKNESSES.

This is an internal problem that is a weakness for JPM. Rising labour costs means lower profits so they should be careful.

7. JPM has less fuel-efficient planes. WEAKNESSES.

Less fuel efficient planes means that they burn more fuel to deliver goods around the world so they have more expenses. This is a weakness that needs to be curtailed.

8. Increasing fuel costs due to turmoil in the Middle East. THREATS.

This is a threat because it is from the External Environment but threatens to increase the costs of deliveries for JPM.