Strategic Management I

An external analysis is the process of scanning and evaluating an organization's various external environmental sectors to determine positive and negative trends that could impact on organizational performance.

• True

• False

Threats are positive external environmental trends or changes that will help the organization improve its performance.

• True

• False

A company’s strategic vision describes:

• why the company does certain things in trying to please its customers.
• management’s storyline of how it intends to make a profit with the chosen strategy.
• management’s aspirations for the future and delineates the company’s strategic course and long-term direction.
• what future actions the enterprise will likely undertake to outmaneuver rivals and achieve a sustainable competitive advantage.

The goal of most organisation is to choose a strategy that

• Maximizes the value of the firm for its shareholders

• Emphasizes high sales

• Minimizes costs

• Controls both costs and expenses

A ski resort can't sell passes because there is no snow. What external factor is this?

• Political

• Economic

• Environment

• Social

Greggs in Renfrew wants to expand its store, but it has had its planning permission refused. What external factor is this?

• Political

• Social

• Competitive

Unemployment is at an all time high. What external factor is this?

• Political

• Economic

• Competitive

• Technological

External factors are out of a business' control.

• True

• False

Internal and external factors can have both a positive and negative affect on a business.

• True

• False

Who has the power over political factors?

• Businesses

• The Government

• Boris Johnson

• Nicola Sturgeon