The First Step in the Strategic Management Process Is

question 45

Multiple Choice

The first step in the strategic management process is

• A) defining the mission and major goals of the organization.
• B) analyzing the macroenvironment.
• C) analyzing the industry environment.
• D) determining the firm's strengths and weaknesses.
• E) deciding on a fit between the organization's strengths and weaknesses and the environment's opportunities and threats.

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Definitions:

Time-Sales Financing

A financing method where payments are made in installments over a predetermined time period.

Prepayment Penalties

Fees charged to borrowers for paying off a loan early, as compensation for the lender's lost interest income.

Pledge of Inventory

The use of a company's inventory as collateral to secure a loan or meet other financial obligations.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to raise immediate capital.