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 local government requires that all businesses within the city limits must recycle or be fined.
E)Shareholders are rewarded with a sizable dividend check.

Question

Quizplus · Accepted Answer

Option D refers to a requirement imposed by the local government, which is an external force beyond the control of the firm. Options A, B, C, and E are all internal factors or decisions made by the firm and not external forces.

A Situation Analysis Requires a Firm to Consider the External