Unidad Educativa Particular Bilingüe “Cardenal Spellman”

Renatta Gordón, Nataly Racines

1 DP “D”

Business Management

Miss Irina Kartashova

443 words
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Explain how SWOT analysis is used as a business planning tool by managers and

decision makers in a business or organization:

SWOT is a business tool that allow managers to see clearly what is happening inside

and outside the company that has an impact on the four principal concepts of a business

planning (creativity, sustainability, chance and ethic), in order to get profits. By analyzing

this information they can improve the business strategies by upgrading the strengths,

exploring new solutions for the weaknesses, taking advantage of opportunities and tackling

threats. In this way, decision makers can lead the company in a better way taking into account

the needs of shareholders and stakeholders.

Explain how the culture and ethics generates both opportunities and threats for a

multinational company (MNC)

Culture creates opportunities to the multinational companies in the sense that

company can take advantage of customs to improve sales, such as holidays, dress and food,

depending on the type of service or product the company is offering. This way managers can

make customers feel more comfortable with the product.

On the other hand, it can be considered offensive some actions by companies towards

consumers because there are some cultures with different thoughts and habits, this generates

that the company lowers its reputation and sales if it is not in a culture that suits the product

or service. For example, during the COVID-19 pandemic, A McDonald's restaurant in China

displayed a sign prohibiting black people from entering. The sign, which was circulated on

social media, says that the McDonald's Guangzhou location "has informed that from now on

it does not allow black people to enter the restaurant." Sales at restaurants open for at least a
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year fell more than 22%, in March, led by a nearly 35% decline in its internationally operated

markets.

Talking about ethics, it’s important to consider that it includes several factors such as,

respecting the environment, workers, and promoting inclusion inside and outside the

company, this generates opportunities for innovation to the company to find a solution to the

problems of society and thus please consumers more. For example, Nestle that in the recent

years, has invested more than 470 million pesos to reduce the environmental impact of its

operations. In addition, 98% of the packaging of all Nestlé products is now recyclable. In

addition, Nestlé was recognized as the first plant in Mexico to receive the Alliance for Water

Stewardship global certification for its management of water in its operations and for the

benefit of the community.