Identifying Internal Weaknesses in an Organisation
Published:
Which one of the following can be considered a weakness in an organisation's internal environment? a. A downturn in the economy of the country b. A decrease in the buying power of customers c. An increase in bad debts of the organisation d. An increase in the repo rate
Animated Video Solution
The first half plays free, the full solution is in the app.
Step by Step Written Solution
Hi Precious, let's look at this business management question together.
Analyzing Organizational Factors
To answer this, we need to distinguish between the internal and external environments of an organization.
Internal vs. External
1. Internal Environment: Factors within the company that it can control, like processes, staff, and finances.
2. External Environment: Factors outside the company, such as economic trends or market changes, that it cannot control.
Now, let's examine our options. A, B, and D all describe macro-economic factors. A downturn in the economy, decreasing customer buying power, and rising interest rates are all external forces that affect the entire market.
Evaluating Options
- A, B, D: These are external environmental factors (threats or market conditions).
- C: An increase in bad debts is a direct reflection of an organization's own credit and collection policies.
The rest of this solution is on Solvi
2 more steps are locked. Watch the full animated, narrated solution for free.
Snap a photo, solve any question like this.
Watch the Rest for Free
Free to download · First solutions are on us
