Question

A Florida-based flashlight company has been extremely successful due in part to the number of hurricanes in Florida that result in power outages. The firm is thinking of expanding its product offerings to include other emergency supplies such as generators and survival kits (consisting of food bars, a water filtration system, first aid supplies, etc.). Before going ahead with this decision, several factors had to be considered: (1) The firm has a great reputation with its flashlights and does not want to ruin it. (2) Its physical plant could be refitted relatively easily to make small generators, but it would be rather costly. (3) It would have to rely on another firm to manufacture and package the survival kits. (4) Although there are nine named hurricanes scheduled for the upcoming year, no one really can predict what will happen. The projected number of hurricanes would fall in which quadrant(s) of the SWOT analysis grid? A. "internal-favorable B. "internal-unfavorable" OC. "external-favorable" OD. "external-unfavorable E. "both external-favorable and external-unfavorable"

Answer 1

The weather condition is beyond the control of humans and is therefore regarded as an external factor. In case hurricanes hit the area as predicted then it would come under favorable external factors or opportunities for the company to expand its business. In case, there are fewer or no hurricanes then it would come under unfavorable external factors or threats for the company as it has already prepared for that. Therefore, the correct option is (E).