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:

Progressive Discipline

A disciplinary system that uses a range of responses to employee infractions, from minor to severe, in an attempt to correct behavior before termination.

Department Managers

Individuals responsible for overseeing the operations, personnel, and budget of a specific department within an organization.

Punitive Purpose

Actions or penalties intended to punish an individual or entity, often used in legal and disciplinary contexts to deter undesirable behavior.

Minimum Standards

The least or lowest level of quality, performance, or achievement that is considered acceptable.