mm mod 2

Question 1

There are two sets of forces crowding on the firm

Answer 1

The internal and
the external

Question 2

The Internal Environment is made up of the following:

Answer 2

1. Top Management 02. Middle Management 03. Supervisors and rank and file personnel
2. The Production System
   (including suppliers)
3. The Marketing System
4. The Financial System
5. The Rewards and Sanctions System
6. Traditions of the firm
7. traditions of the firm

Question 3

The External Environment Compromise (4) forces

Answer 3

Economic forces, sociocultural forces, political forces, technological forces.

Question 4

Technical aspects include (10)

Answer 4

1. Structure of industry
2. Types and sources of materials
3. Labor requirements and wage structure
4. Cost of Production
5. Capacity Utilization
6. Manpower Training and development
7. Investment requirements
8. Quality control
9. Level of Technology
10. Other technical characteristics

Question 5

The industry’s financial condition takes into account (4)

Answer 5

1. profitability and return on investment
2. liquidity
3. solvency
4. growth and efficiency

Question 6

past demand and projected demand

Answer 6

historical demand and demand forecast

Question 7

what is already available

Answer 7

supply trends

Question 8

computed based on consumption capacity of the target market

Answer 8

demand

Question 9

measurable by how much the existing company or the competitors are already producing

Answer 9

supply

Question 10

ability of the firm to meet its short term financial debts or obligation

Answer 10

liquidity

Question 11

have the capacity to pay loans for 5 years or so

Answer 11

solvency