ITPEC IP October 2021 Question 79

Source exam: ITPEC IP October 2021Topic: Business Strategy Management

ITPEC IP October 2021 — Question 79 of 100

Developing and commercializing electric vehicles uses the company's R&D strength to counter oil-price and environmental threats. This is an ST strategy in the SWOT matrix: apply an internal strength to reduce or overcome an external threat.

Answer (c)

Why not others:
- extending or rehiring workers addresses a weakness

- low-interest funding uses an opportunity and stockpiling oil does not leverage the stated strengths

- strengthening sales through brand image uses a strength but does not address the identified threats

Key rule: SWOT cross-analysis pairs strengths with threats for an ST strategy that uses existing capabilities defensively.

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