When Conducting an Internal Analysis, a Manager Must Do All

question 56

Multiple Choice

When conducting an internal analysis, a manager must do all of the following EXCEPT:

• A) look at the way in which forces in the macroenvironment affect industry structure and influence opportunities and threats.
• B) understand the role of rare, valuable, and hard-to-imitate resources in the establishment of competitive advantage.
• C) appreciate how rare, valuable, and hard-to-imitate resources lead to superior efficiency, innovation, quality, and customer responsiveness.
• D) analyze the sources of their company's competitive advantage to identify what drives the profitability of their enterprise.
• E) analyze the sources of their company's competitive advantage to identify where opportunities for improvement might be.

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Definitions:

Normal Good

A good whose demand increases as consumers' income rises, holding all other factors constant.

Consumption

Consumption refers to the use of goods and services by households. It is a primary component of the economy, encompassing the spending on goods and services by consumers.

Income

Money received, especially on a regular basis, for work or through investments.

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.