Which of the Following Factors,listed in a Situation Analysis for a Major

question 140

Multiple Choice

Which of the following factors,listed in a situation analysis for a major auto manufacturer,is the best example of a threat?

• A) The factory that manufactures a new,popular car cannot build enough vehicles to meet the demand,while other factories have excess capacity.
• B) Recent consumer studies have indicated that Chinese consumers prefer American cars.
• C) A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded.
• D) Due to outdated engine technology,the company's cars get lower gas mileage than those of major competitors.
• E) The company has lower manufacturing costs than its key competitors,allowing it to sell its cars at low prices.

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