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

question 38

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)these issues and obstacles must be cleared before management can focus clearly on what is the best strategy for the company to pursue.
• E)the worry list helps company managers clarify their thinking about how best to modify the company's value chain.

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Definitions:

Journalize

The process of recording transactions in an accounting journal, noting the debit and credit aspects of each transaction.

Percent of Sales Method

A financial analysis technique used to forecast future expenses or account balances as a percentage of sales revenue.

Direct Write-off Method

An accounting method where uncollectible accounts receivable are written off directly against income at the time they are deemed noncollectible.

Uncollectible Receivables

Receivables considered uncollectible by a company and therefore recorded as a loss.