Page 107 - DMGT521_PROJECT_MANAGEMENT

Project Management

Notes (d) Partnerships: Business partners would share assets and liabilities, allowing for a new
source of capital and skills.
Businesses must be able to identify whether the collaborator has the capabilities needed to
help run the business as well as an analysis on the level of commitment needed for a
collaborator-business relationship.

5. Climate: In order to fully understand the business climate/environment there are usually
many different factors that can affect a business, and if researched well it will contribute to
a company that can respond well to change. An analysis on the climate is also known as
the PEST analysis. The types of climate/environment firms have to analyse are:
(a) Political and regulatory environment: An Analysis of how active the government
regulates the market with their policies and how it would affect the production,
distribution and sale of the goods and services.

(b) Economic Environment: An Analysis of trends regarding macroeconomics, such
as exchange rates and inflation rate, can prove to influence businesses.
(c) Social/cultural environment: Interpreting the trends of society; which includes the study
of demographics, education, culture etc.
(d) Technological analysis: An analysis of technology will help improve on old routines
and suggest for new methods in being more cost efficient. In order to stay competitive
and gain an advantage over others, businesses must have sufficient knowledge on
the technological advances.

SWOT

A SWOT Analysis is another method under the situation analysis that examines
the Strengths and Weaknesses of a company (internal environment) as well as the Opportunities
and Threats within the market (external environment). A SWOT analysis looks at both current
and future situations, where they analyze their current strengths and weaknesses while looking
for future opportunities and threats. The goal is to build on strengths as much as possible while
reducing weaknesses. A future threat can be a potential weakness while a future opportunity can
be a potential strength. This analysis helps a company come up with a plan that keeps it prepared
for a number of potential scenarios.

7.3 Conduct of Market Survey

A market survey is one method of market research that is based on questioning an audience or
segment of the market. Market surveys are conducted to gather information about companies,
products and services in order to analyze and understand customers and prospects for business
success. According to Edward F. McQuarrie in “The Market Research Toolbox,” surveys and
interviews are the most used forms of market research.
1. Develop or obtain a focused marketing research plan that includes what information is
being sought from what audience, how to get the information, how much funding is
available to gather the information and methods to use to get the information. Understand
this can be a simple report developed by a person—as the first step in deciding whether to
open a business and as an act of planning to gather information to do so—or a professional
marketing research plan provided by a marketing consultant or a marketing team. Know
that the market survey is one method of market research in a marketing research plan.
2. Write a comprehensive questionnaire about the survey topic in simple, easy-to-understand
language targeted to the survey audience. Make sure the marketing research plan provides

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