The Third Step in Strategic Management Is Related to Analysis

question 95

Multiple Choice

The third step in strategic management is related to analysis of________ .

• A) time pressures involved in serving the customer
• B) the alternatives the firm faces
• C) the external environment
• D) the internal environment

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Definitions:

Residual Income

The income that remains after subtracting all required expenses, including a minimum target return, from operating income.

Producing Departments

Sections within a manufacturing facility where raw materials are processed or assembled into finished products.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Cafeteria

A type of food service location within an establishment where customers serve themselves from a variety of options.