Question

The consumer packaged goods industry is one with several large competitors, soaring raw materials prices, and strong demands from powerful retailers for lower prices. As a result, Colgate-Palmolive Co. and Unilever Group, the makers of products such as Colgate toothpaste and Ben & Jerry's ice cream respectively, both reduced their earnings forecasts. However, Procter & Gamble, another consumer packaged goods company, did not. At P&G, innovation is a key attribute, which allowed the firm to update all 200 of its brands and to develop products like Crest Whitestrips that consumers crave. P&G also used its marketing know how to develop unique product placements on television shows that highlight its brands. A SWOT analysis for P&G would indicate that soaring raw materials prices are a __________ while the product placement that features its brands on TV shows is a _________.
A. strength; weakness
B. weakness; threat
C. threat; opportunity
D. opportunity; threat
E. opportunity; strength

Answer 1

Answer:

C. threat; opportunity

Explanation:

A SWOT analysis is a tool that companies use to identify their strengths, weaknesses, opportunities and threats:

-Strengths refer to the things that the company can do well.

-Weaknesses refer to  the things in which the company doesn't perform well.

-Opportunities refer to external situations that provide the company an advantage it can take to improve its performance.

-Threats refer to external situations that provide a difficult environment for the company to perfom well.

According to this, the answer is that a SWOT analysis for P&G would indicate that soaring raw materials prices are a threat because this an external situation that affects the company and the product placement that features its brands on TV shows is an opportunity because product placements are a form of advertising that the company can take advantage of to target its customers.