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CS Professional · Strategic Management and Corporate Finance · Analyzing the External and Internal Environment

In the TOWS matrix, a strategy that uses the firm's internal strengths to reduce the impact of external threats is called:

This is the ST strategy. It matches internal strengths with external threats so the firm can neutralise or reduce them. SO exploits opportunities with strengths, WO uses opportunities to fix weaknesses, and WT is purely defensive.

  1. ASO strategy
  2. BWO strategy
  3. CST strategyCorrect
  4. DWT strategy

Explanation

ST combines Strengths with Threats: the firm uses its internal capabilities to counter or avoid external threats. SO uses strengths to exploit opportunities, WO overcomes weaknesses by using opportunities, and WT is defensive, minimising weaknesses and avoiding threats.

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