Figure 2-7

-Consider Figure 2-7 above.A Florida-based flashlight company has been extremely successful due in part to the number of hurricanes in Florida that result in a loss of power.The firm is thinking of expanding its product offerings to include other emergency supplies such as generators and survival kits.Before going ahead with this decision,several factors had to be considered: (1)The firm has a great reputation with its flashlights and doesn't 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 need to rely on another company to supply the survival kits would fall in which quadrant(s)of the SWOT analysis grid?

Question

Figure 2-7
 
-Consider Figure 2-7 above.A Florida-based flashlight company has been extremely successful due in part to the number of hurricanes in Florida that result in a loss of power.The firm is thinking of expanding its product offerings to include other emergency supplies such as generators and survival kits.Before going ahead with this decision,several factors had to be considered: (1)The firm has a great reputation with its flashlights and doesn't 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 need to rely on another company to supply the survival kits would fall in which quadrant(s)of the SWOT analysis grid?

Quizplus · Accepted Answer

The need to rely on another company to supply the survival kits potentially represents an external unfavorable factor.The flashlight firm would have to rely on an outside source supplier over which it would have limited control (deadlines,quality control,changes in materials costs,etc. )and there is a greater potential of competition from other sources that provide the materials in the kit.Therefore,quadrant D,or threat,is the correct answer.

Figure 2-7 -Consider Figure 2-7 Above.A Florida-Based Flashlight Company Has Been Extremely