Skip to content

CMA Intermediate · Operations Management and Strategic Management · Introduction to Strategic Management

A textile company's SWOT review lists: strong brand and skilled workforce; outdated machinery; rising demand for sustainable fabrics; new import duty cuts that let foreign rivals enter. Which classification is entirely correct?

Brand and workforce are internal strengths, outdated machinery is an internal weakness, rising demand for sustainable fabrics is an external opportunity, and foreign rivals entering after duty cuts is an external threat. SWOT separates internal factors from external ones.

  1. AStrengths: brand, machinery; Opportunities: workforce; Threats: import duty cuts
  2. BStrengths: brand, workforce; Weakness: outdated machinery; Opportunity: sustainable fabric demand; Threat: foreign rivals' entryCorrect
  3. CStrengths: workforce; Weaknesses: brand; Opportunities: machinery; Threats: demand
  4. DStrengths: brand, workforce; Weakness: sustainable demand; Opportunity: outdated machinery; Threat: import duty cuts

Explanation

Internal factors are strengths (brand, workforce) and weakness (outdated machinery). External factors are the opportunity (rising demand for sustainable fabrics) and the threat (duty cuts enabling foreign entry). Other options misplace internal items as external or vice versa.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Strategic Management shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Strategic ManagementFree diagnostic mock

More Introduction to Strategic Management questions