Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increased competition in the market
B
High employee satisfaction
C
Strong brand loyalty
D
Effective supply chain management
Understanding the Answer
Let's break down why this is correct
Answer
In a SWOT analysis, a threat like **regulatory changes** can greatly influence how a company spreads its money and talent. Because new laws or compliance rules often require extra staff, new equipment, or costly updates, a firm may have to divert funds from growth projects to meet those demands. This shift forces managers to reassess priorities, sometimes postponing marketing or product development to cover legal costs. For example, if a new safety regulation mandates expensive upgrades, a company might cut back on hiring for a new product line to fund the compliance work.
Detailed Explanation
When the market has many competitors, a firm must use more money on marketing, product upgrades, or new staff to stay ahead. Other options are incorrect because High employee satisfaction is actually a strength, not a threat; Strong brand loyalty is a strength that drives sales.
Key Concepts
Threats
Resource Allocation
Topic
SWOT Analysis
Difficulty
medium level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1In a SWOT analysis, which of the following is an example of a threat that a company may face in its external environment?
easyBusiness
Practice
2
Question 2A tech startup is assessing its market position. Which of the following factors should be classified as a 'Threat' in a SWOT analysis?
easyBusiness
Practice
3
Question 3In a SWOT analysis, which of the following best describes the role of identifying 'Threats'?
easyBusiness
Practice
4
Question 4In a SWOT analysis, which of the following is an example of a threat that a company may face in its external environment?
easyBusiness
Practice
5
Question 5In a SWOT analysis, which of the following threats can significantly impact a company's resource allocation decisions?
mediumBusiness
Practice
6
Question 6A tech startup is assessing its market position. Which of the following factors should be classified as a 'Threat' in a SWOT analysis?
easyBusiness
Practice
7
Question 7In a SWOT analysis, which of the following best describes the role of identifying 'Threats'?
easyBusiness
Practice
8
Question 8In a SWOT analysis, which of the following is an example of a threat that a company may face in its external environment?
easyBusiness
Practice
9
Question 9In a SWOT analysis, which of the following threats can significantly impact a company's resource allocation decisions?
mediumBusiness
Practice
10
Question 10In a SWOT analysis, which of the following best describes the role of identifying 'Threats'?
easyBusiness
Practice
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.