CSEET · Economic and Business Environment · Business Environment
In a SWOT analysis of an Indian packaged-foods company, which of the following would be classified as an Opportunity?
Rising disposable incomes that increase demand for ready-to-eat foods is an opportunity, because it is a favourable external factor outside the firm's control. The distribution network is an internal strength, the old plant an internal weakness, and the price-cutting entrant an external threat.
- AA strong distribution network across small towns
- BRising disposable incomes increasing demand for ready-to-eat foodsCorrect
- CAn ageing production plant with high breakdown rates
- DA new competitor entering with aggressive price cuts
Explanation
Opportunities are favourable external factors. Rising incomes boosting demand is an external, favourable trend. The distribution network is a strength, the ageing plant is a weakness, and the aggressive new competitor is a threat.
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