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CMA Intermediate · Operations Management and Strategic Management · Strategic Analysis and Strategic Planning

In a SWOT analysis of an Indian two-wheeler manufacturer, which of the following would be classified as an opportunity?

A new government subsidy for electric two-wheelers is an opportunity because it is an external, favourable condition the firm can exploit. The dealer network and technician shortage are internal factors, while a competitor's brand recall is an external threat.

  1. AA newly announced government subsidy for electric two-wheelers that the firm is ready to useCorrect
  2. BA shortage of skilled assembly-line technicians within the firm
  3. CThe firm's strong dealer network across small towns
  4. DA competitor's high brand recall among urban buyers

Explanation

Opportunities are favourable factors in the external environment. A government subsidy is external and favourable. The dealer network is an internal strength, the technician shortage an internal weakness, and a rival's brand recall is an external threat.

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