Situational Analysis, as Part of the Formal Planning Process, Focuses

question 56

Multiple Choice

Situational analysis, as part of the formal planning process, focuses on

• A) the internal forces at work within an organization and examines influences from the external environment.
• B) the external forces at work within an organization and examines influences from the internal environment.
• C) the internal forces at work within an organization and examines influences from the internal environment.
• D) the external forces at work within an organization and examines influences from the external environment.
• E) past conditions, current trends, and future events.

---

Definitions:

Market Equilibrium

A situation in a market where the quantity of a good or service supplied matches the quantity demanded, leading to a stable price.

Competitive Industry

A market characterized by a large number of firms competing against each other, leading to product diversity, innovation, and fair prices for consumers.

Market Demand

represents the total demand for a product or service within a market, determined by consumers' willingness and ability to buy at various prices.

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs.