A Situation Analysis Requires a Firm to Consider the External

question 115

Multiple Choice

A situation analysis requires a firm to consider the external forces and trends that affect it. Some of these may be favorable to the organization while others may be unfavorable. Which of the following 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 close the gap between production costs and profits.
• 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.

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Definitions:

Selman's Stages

A theory proposing different stages of social understanding or perspective-taking ability that children develop through.

Perspective-Taking

The ability to understand a situation or concept from an alternative point of view, including others' thoughts and feelings.

Regulate

To control or maintain the rate or speed of a process or function, often ensuring proper function or compliance with standards.

Self-Esteem

An individual's subjective evaluation of their own worth.