CPA · Question 21 · Area I: Business Analysis
A company identifies the following in its SWOT analysis:<br/>- Strength: Strong R&D capabilities<br/>- Threat: Aggressive new competitors entering the market<br/><br/>Which strategic option best represents an 'ST' (Strength-Threat) strategy?
Answer options:
Form a joint venture with a competitor to share costs.
Divest the R&D division to focus on core operations.
Accelerate innovation to differentiate products and create barriers to entry.
Lobby for increased import tariffs.
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