A Situation Analysis Requires a Firm to Consider the External

question 197

Multiple Choice

A situation analysis requires a firm to consider the external forces and trends that affect it, either favorable or unfavorable. Which scenario is an example of an external force?

• A) The firm buys its own fleet of trucks, so it no longer needs to hire a trucking company for distribution.
• B) A hiring freeze is put into place. Although no one is fired, no one can be hired.
• C) A goal is set to decrease production costs with new equipment.
• D) A city government bans plastic straws inside all restaurants and bars in the city limits.
• E) Shareholders are rewarded with a sizable dividend check.