CSEET · Economic and Business Environment · Business Environment
A Pune-based food processing company finds that it has a highly skilled R&D team, but a new regulation will soon sharply raise compliance standards that its older plants cannot meet. Using the SWOT matrix to pair factors, a strategy that uses the R&D strength to deal with the regulatory threat is called:
It is an ST strategy. The skilled R&D team is an internal strength and the stricter regulation is an external threat, so using the strength to counter the threat is the strengths-threats pairing in the SWOT matrix.
- AWO strategy
- BST strategyCorrect
- CWT strategy
- DSO strategy
Explanation
The R&D team is an internal strength (S) and the new regulation is an external threat (T). Using a strength to counter a threat is an ST strategy. SO would use strength for an opportunity, WO would overcome a weakness using an opportunity, and WT aims to minimise weakness and avoid threats.
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