Identifying the Strategic Issues a Company Faces and Compiling a "Worry

question 131

Multiple Choice

Identifying the strategic issues a company faces and compiling a "worry list" of problems and roadblocks is an important component of company situation analysis because:

• A) without a precise fix on what problems/issues a company confronts,managers cannot know what the industry's key success factors are.
• B) the "worry list" sets the management agenda for taking actions to improve the company's performance and business outlook.
• C) without a precise fix on what problems/roadblocks a company confronts,managers are less clear about what value chain activities to benchmark.
• D) the "worry list" helps company managers clarify their thinking about how best to modify the company's value chain.
• E) these issues and obstacles must be cleared before management can focus clearly on what is the best strategy for the company to pursue.

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Definitions:

Control

The ability to shape or control the actions of others or the progression of events.

Sole Proprietorship

A business structure where a single individual owns and operates the business.

Corporate Income Tax

A tax on the income or profit of corporations, which contributes to government revenue.

Gross Investment

The total amount of money spent on capital goods, or assets intended to produce future income, not accounting for depreciation.