In the SWOT example, which item is a threat?

• A. Our firm receives too many customer service complaints
• B. Our firm has certified NCIDQ designers
• C. Our firm is relocating to a greater market area
• D. State licensing will be required for supervision or installations

Answer: (D)

In SWOT, threats are external factors that could negatively impact the organization by creating risk or obstacles. The statement about state licensing becoming required for supervision or installations is a regulatory change coming from outside the firm. It could raise costs, slow projects, or limit who can supervise or install work, making it harder to operate smoothly. That external regulatory constraint fits the definition of a threat.

The other items describe internal issues or opportunities: internal weaknesses like customer service complaints, an internal strength like having certified NCIDQ designers, and an external opportunity like moving to a larger market area.