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/roadblocks a company confronts, managers are less clear about what value chain activities to benchmark.
B. the worry list helps company managers clarify their thinking about how best to modify the company's value chain.
C. without a precise fix on what problems/issues a company confronts, managers cannot know what the industry's key success factors are.
D. the worry list sets the management agenda for taking actions to improve the company's performance and business outlook.
E. these issues and obstacles must be cleared before management can focus clearly on what is the best strategy for the company to pursue.
Answer: D
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The costs transferred from a prior process to a subsequent process are referred to as transferred-in costs
Indicate whether the statement is true or false
In the early 2000s, the Mattel Company was faced with a major problem with some of its toys due to faulty magnets and high levels of lead-based paint. When the company realized it was facing a serious problem, it immediately involved federal agencies on product safety, recalled millions of toys from the shelves, and launched a massive campaign to inform consumers about the recall. In addition, the company set up a crisis link on its webpage and posted updates regularly. Mattel's actions can be classified as
A. direct marketing. B. consumer fraud. C. poor public relations. D. negative publicity. E. crisis management.
Everything else equal, if stockholders prefer current income to future income (i.e., capital gains), a firm's cost of equity will:
A. decrease if its dividend payout increases. B. decrease if its eliminates all dividend payments. C. decrease if its excess (free) cash increases. D. decrease if management promotes its wishes to restrict ownership in the firm. E. increase if debt restrictions decrease.
In a contribution format income statement for a merchandising company, the cost of goods sold reports the product costs attached to the merchandise sold during the period.
Answer the following statement true (T) or false (F)