107. Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat? A threat is an external negative event. Being the target of a lawsuit is certainly a negative event, and the law firm is external to the company. Problems in balancing manufacturing capacity are internal to the firm and so are weaknesses. Potential demand in China is a positive external factor—an opportunity. A lower cost structure is a positive internal factor—a strength. The gas mileage issue might sound like a threat in that competitive offerings are superior, and competitors are external to the firm; however, the example states that gas mileage is inferior due to outdated technology, which is an issue internal to the firm. AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 02-03 Analyze a marketing situation using SWOT analyses. Topic: SWOT Analysis
107. Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat? A threat is an external negative event. Being the target of a lawsuit is certainly a negative event, and the law firm is external to the company. Problems in balancing manufacturing capacity are internal to the firm and so are weaknesses. Potential demand in China is a positive external factor—an opportunity. A lower cost structure is a positive internal factor—a strength. The gas mileage issue might sound like a threat in that competitive offerings are superior, and competitors are external to the firm; however, the example states that gas mileage is inferior due to outdated technology, which is an issue internal to the firm. AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 02-03 Analyze a marketing situation using SWOT analyses. Topic: SWOT Analysis