Consider the following quotation with your partner. Say if you agree or disagree with the quotation. Provide enough argumentation to support your ideas.



“SWOT analysis is something which is most important to achieve success. One must understand the strength as well as the weakness within himself, which will make the journey towards success easier.”

Write a paragraph or two (up to 50-70 words) under one of the headlines below.

1. Nothing is going to change.

2. The journey towards success.

3. The need for growth.

Render the text in English and entitle it.

SWOT-анализ – это метод стратегического планирования, заключающийся в выявлении факторов внутренней и внешней среды организации и разделении их на четыре категории: сильные стороны, слабые стороны, возможности и угрозы.

Сильные и слабые стороны являются факторами внутренней среды (то есть тем, на что сам объект способен повлиять); возможности и угрозы являются факторами внешней среды (то есть тем, что может повлиять на объект извне и при этом не контролируется объектом).

Объектом SWOT-анализа может быть не только организация, но и другие социально-экономические объекты: отрасли экономики, города, государственно-общественные институты, научная сфера, политические партии, некоммерческие организации (НКО), отдельные специалисты, персоны и т. д.

Задача SWOT-анализа – дать структурированное описание ситуации, относительно которой нужно принять какое-либо решение. Выводы, сделанные на его основе, носят описательный характер без рекомендаций и расстановки приоритетов.

Поскольку SWOT-анализ в общем виде не содержит экономических категорий, его можно применять к любым организациям, отдельным людям и странам для построения стратегий в самых различных областях деятельности.                                                     

 (From: http://ru.wikipedia.org)

Role-playing

You and your business partner(s) are going to launch a start-up. Get decided what kind of business it will be. Make a SWOT analysis for your project.

Case-study/Project

Scan a mini-SWOT analysis posted by Derek Sharp, managing director for global distribution sales and services at Travelport, and two readers’ comments on the post. Discuss with your classmates the strengths, weaknesses, opportunities and threats described in the material.

   

Airlines want to be retailers – a mini-SWOT analysis of the issues

Consumers expect excellent service, a consistent brand experience and the same quality product at every point of interaction.

In a ruthlessly competitive environment those organizations that have gone beyond merely surviving understand the need for consistency in order to properly serve those consumers.

The challenge has been partly based on how the respective players in the industry support the airlines’ urgent need to transform, grow and attract wider sales.

 Let’s focus on what all airlines have in common: the need for growth, profitability and the different choices airlines take to build it.

For example, Air France, British Airways and KLM introduce some fares that do not include checked baggage, previously the sole domain of the low cost carrier, whilst easyJet introduce allocated seating as part of their strategy to entice more business travelers.

Each airline will make their own business choices in order to serve their own customers with increasingly better targeted products.

The ability to be even smarter and faster will lead to airlines using different technologies for different circumstances across a multitude of channels.

On the other hand, securing more complex operations whether long haul routes, alliances and interlining partnerships will still require the sophistication that allows these products to work between carriers, bookable anywhere in the world, for whatever itinerary world travelers choose: industry standards will need to stick around.

Airlines are learning the lessons from other industries and the day when we can view the industry as an industry of air travel retailers is rapidly approaching.

A focus for enlightened players in the industry is to ensure that technology enables, as opposed to hinders, the need to provide customers with a truly consistent and dynamic multi-channel retail experience that caters for the wide range of business choices that individual airlines make.

(From: www.tnooz.com)

 

John Pope says:

You’ve presented and articulated the “problem” of mass standardization, not just for air products, but also for almost any sector.

But what that clearly indicates is simply the fact that different passengers or customers want and require entirely different levels of service and experiences.

Gone are the days of standardization – in the name of cost reduction or efficiency – and here to stay are disruptive innovation, specialization and delivering what the individual customer wants.

 

Timothy O'Neil-Dunne says:

I support what Derek is saying here about retailing. But I would go further than he has. I would say that the needs for product differentiation are no longer possible using the current technology base. My interpretation of Derek’s position expressed here while not explicitly disavowing such a notion is clear; that product differentiation at the retail level is not just possible but a requirement NOW irrespective of the technologies used.

 


Self-assessment grid

Tick (✓) “Yes” or “No” answers in appropriate columns and lines to self-assess your knowledge and skills. Yes No

I know:

- the topical vocabulary “SWOT analysis”;
- how to pronounce the words with the affix multi-;
- different meanings of the Present Perfect Continuous and Future Continuous Tenses;
- the meaning of  the grammatical structure be going to.
I can:
- choose appropriate words/forms from the alternatives;
- match topical nouns with their definitions;
- organize chains of jumbled words into sentences;
- render in Russian a text related to SWOT analysis;
- speak on different strategies companies can use;
- discuss a SWOT analysis sample;
- role-play (make a SWOT analysis).
Total number of positive/negative answers:

 


Module 9

Pre-reading issues

 

 

1. What is marketing?

2.  What are the prerequisites of good marketing?

3. Why is marketing essential for doing business?

 

Marketing mix

Businesses exist to conduct exchanges with others. Individuals and organizations outside of the firm exchange their resources for the products or services of the business. Without those exchanges, businesses will be unable to cover costs and meet expenses and will eventually go out of business.

The product or service that a firm offers is critically important in creating exchanges, but equally important are the prices that the firm charges, the ways that consumers are made aware of and encouraged to trade with the firm, and where and how to get the product or service to the consumer. In marketing, those ideas are known as the marketing mix – product, price, promotion, and place.

A good product or service satisfies needs or wants. Necessity goods and services meet basic human needs (food, clothing, shelter, medical services, etc.). Luxury goods and services go beyond basic needs. An expensive dinner at a fine restaurant satisfies basic needs, but might also satisfy self-esteem and ego needs. Because there is usually a premium paid for luxuries, their demand is usually affected by price changes more than the demand for necessities is affected.

There is no magic formula used to determine prices. Lower prices create more demand than higher prices, but the profits gained from each sale are also lower. A higher price might bring in greater profits on items sold, but fewer consumers will be willing or able to pay higher prices. The trick is to find a price that is low enough to generate demand, but high enough to cover costs and provide enough profit to make the venture worthwhile.

If no one knows that your firm exists or what you offer, you may as well not exist. Advertising and promotional activities are needed to create exchanges with consumers. It is important that consumers recognize your firm as the place to fill needs and wants. Incentives and promotions should be used to introduce, remind, encourage, and compel consumers to trade with your firm.

Exchanges with consumers need to occur in places and at times that are convenient for them. Care should be taken when choosing locations for sales, service and supply outlets and setting times of operation. Visibility, convenience of location, and proximity to target markets should all be considered when choosing a location. For firms that distribute their offerings across a wide geographical area, locations with access to proper distribution systems should be selected.

To succeed in your venture, you must offer a desirable product or service, make consumers aware of your offerings, supply consumers at times and places they require, and charge prices that are deemed attractive, yet profitable. So before running out or setting up a business, spend the time and resources needed to thoroughly evaluate all aspects of the marketing mix.  

The marketing strategy applies to all types of organizations. Firms that do not offer goods or services demanded by consumers in places required by consumers and at prices deemed attractive to consumers will have a hard time surviving over the long run. Promotional activities must also inform consumers of the firm’s offerings and encourage them to trade with the organization.

 

 

Text comprehension

1. What do businesses exist for?

2. Businesses will be unable to cover costs and meet expenses without exchanges, will they?

 3.  What is the marketing mix?

 4. What is the difference between necessity and luxury goods and services?

5. What are prices determined by?

6. Why is it difficult to find a proper price?

7. What should incentives and promotions be used for?

8. Why should locations and supply outlets be chosen with great care?

9. What other things should be taken into consideration while choosing a location?

10. Why is it important to thoroughly evaluate all aspects of the marketing mix?


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