In conducting a SWOT analysis, which of the following best describes how a company's strengths can be leveraged in its action plan when considering external factors?

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By disregarding external threats and focusing solely on internal capabilities

By aligning strengths with opportunities identified in the external environment

By minimizing the impact of strengths on strategic decisions

By using strengths to highlight weaknesses in competitors

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Answer

A company’s strengths should be matched to external opportunities so that the action plan turns those strengths into competitive advantages. By spotting opportunities that line up with what the company already does well, managers can focus resources on those areas. For instance, a firm with a strong brand might launch a new product line that appeals to a growing market segment. In this way, strengths are not just internal assets but tools that help the company seize external chances and stay ahead of rivals.

Detailed Explanation

A good plan matches what the company can do well with chances outside. Other options are incorrect because Ignoring outside threats means the firm might miss big problems; Thinking strengths weaken decisions is a common mistake.

Key Concepts

Strengths

External Analysis

Action Plan

Topic

SWOT Analysis

Difficulty

hard level question

Cognitive Level

understand

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In conducting a SWOT analysis for a company, how can identifying weaknesses during an external analysis impact the business strategy?

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