University of Central Florida (UCF) MAN6721 Applied Strategy and Business Policy Practice Exam 1

In the context of SWOT analysis, an opportunity is defined as a favorable situation in the firm's environment that can be leveraged to achieve strategic objectives or enhance the company's performance. This includes elements such as emerging market trends, changes in consumer preferences, technological advancements, or favorable regulatory changes that the firm can take advantage of to improve its competitive position. Recognizing opportunities allows businesses to align their strengths with external factors, leading to growth and improvement.

Opportunities differ fundamentally from threats, which represent external challenges that may impede a firm's success. Weaknesses, on the other hand, are internal limitations that a company must address to avoid hindering its performance. Resource advantages relate to the firm's existing strengths rather than the external possibilities for growth. Therefore, identifying opportunities is crucial for strategic planning, as it helps organizations focus on areas where they can capitalize and drive future success.