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 cigarette smoking inside all restaurants and bars in the city limits.
E)Shareholders are rewarded with a sizable dividend check.

Question

Quizplus · Accepted Answer

Regulation from outside the organization would be an external force,part of the regulatory environmental force that is analyzed during an environmental scan (see Chapter 3).Others are internal factors an organization considers.

A Situation Analysis Requires a Firm to Consider the External