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CS Professional · Strategic Management and Corporate Finance · Strategic Analysis and Planning

Sundaram Foods Ltd. uses a SWOT matrix to choose strategy. It has a strong cold-chain logistics capability (Strength) and notices rapidly growing demand for packaged ready-to-eat meals in smaller cities (Opportunity). Which strategic posture does matching these two factors suggest?

Matching a strong cold-chain capability with growing demand for ready-to-eat meals gives an SO strategy. It uses an internal strength to exploit an external opportunity. WO, ST and WT strategies would require a weakness or a threat to be part of the pairing.

  1. AWT strategy, aimed at retrenchment
  2. BWO strategy, aimed at overcoming weakness through opportunity
  3. CST strategy, using strengths to counter a threat
  4. DSO strategy, using strengths to exploit an opportunityCorrect

Explanation

In the TOWS/SWOT matrix, pairing an internal Strength with an external Opportunity gives an SO (maxi-maxi) strategy that uses the capability to capture the opening. No weakness or threat is involved here, so WO, ST and WT do not fit.

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