Which of the following describes a threat in SWOT analysis?

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Study for the UCF MAN6721 Applied Strategy and Business Policy Exam. Use flashcards and multiple choice questions with hints and explanations. Ace your test!

In SWOT analysis, threats are external factors that can hinder an organization’s performance or success. They represent challenges that the organization may face which can negatively impact its operations, reputation, or profitability. Identifying threats is crucial as it allows a company to develop strategies to mitigate or respond to these challenges effectively.

The correct choice describes a major unfavorable situation, which can include market trends, competitive actions, regulatory changes, or economic downturns that pose risks to the organization. By acknowledging these threats, companies can better prepare by leveraging their strengths, addressing their weaknesses, and exploring opportunities for growth or adaptation.

In contrast, the other options describe different components of SWOT analysis: resource advantage refers to strengths, a major favorable situation aligns with opportunities, and an internal deficiency represents a weakness. These elements emphasize the different aspects that organizations must consider when assessing their strategic positions.