Question

Scenario B: Raney Pharmaceuticals Corp. has completed a SWOT analysis as part of their ongoing strategic planning process. They have collected the following information: New regulations have been passed limiting their ability to sell certain formulations over the counter. As compared to their competitors, their management team is by far the best in the industry. They have fallen behind in research and development in the last few years. More people are becoming interested in natural alternatives to traditional chemical pharmaceuticals; this trend is expected to continue over the next decade. The company has inadequate financial resources to invest in their operations.

Answer 1

Answer:

SWOT ANALYSIS

Explanation:

A SWOT analysis looks at internal and external factors that can affect a business.

In SWOT analysis Internal factors are strengths and weaknesses. External factors are the threats and opportunities. An example of an external factor is changes in technology or a new government policy.

The Strategic planning process implored by Raney Pharmaceuticals Corp should help them:

1. respond to new trends

Since more people are becoming interested in natural alternatives to traditional chemical pharmaceuticals and the trend is expected to continue over the next decade Raney Pharmaceuticals Corp could take advantage of this opportunity by diversifying to produce natural alternative medication.

2. Discover threats (external factor)

Since New regulations have been passed limiting their ability to sell certain formulations over the counter, it would likely reduce their sales.

3. Overcome Weakness

The company has inadequate financial resources to invest in their operations and thus would need to get new investors.

Also, since they have fallen behind in research and development in the last few years adequate measures should be taken to improve their research and development.