Which of the following is an example of an external influence that may cause a company to change its strategic direction?
(A) The outsourcing of marketing
(B) The decision to establish web-based ordering
(C) The introduction of new management processes
(D) The legislation of new environmental health policies - HSC - SSCE Business Studies - Question 6 - 2005 - Paper 1
Question 6
Which of the following is an example of an external influence that may cause a company to change its strategic direction?
(A) The outsourcing of marketing
(B) The ... show full transcript
Worked Solution & Example Answer:Which of the following is an example of an external influence that may cause a company to change its strategic direction?
(A) The outsourcing of marketing
(B) The decision to establish web-based ordering
(C) The introduction of new management processes
(D) The legislation of new environmental health policies - HSC - SSCE Business Studies - Question 6 - 2005 - Paper 1
Step 1
Identify the External Influence
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Answer
To determine which option represents an external influence, we consider factors outside the company's control. External influences can include regulations, market conditions, and economic factors.
Step 2
Evaluate Each Option
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Answer
Outsourcing of marketing (A) - This is a decision made internally by the company and does not represent an external influence.
Web-based ordering (B) - This decision indicates a strategic move by the company but is not an external influence; it is an internal decision.
New management processes (C) - Similar to the previous options, this is an internal change and does not reflect an external influence.
Legislation of new environmental health policies (D) - This is an external influence as it originates from government action and can significantly affect the strategic decisions of a company.
Step 3
Select the Correct Answer
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Answer
Given the evaluations, the correct answer is (D) The legislation of new environmental health policies, as it is a clear example of an external influence impacting a company's strategic direction.