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Which of the following internal factors directly affect the planning and decision-making process within an organization?

i. Company mission and objectives
ii. Research and development (R&D) capabilities
iii. Economic inflation rate
iv. Value system of the founders

Ai, ii and iv

Bi and ii

Ci, ii and iii

Dii, iii and iv

Answer:

A. i, ii and iv

Read Explanation:

  • Company mission/objectives, R&D capabilities, and value systems are internal and can be shaped by management; these directly impact planning. Economic inflation rate is part of the external environment, not internal.


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i. Political factors like government stability
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iii. Social and cultural trends
iv. Intermediaries like distributors and retailers

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Which of the following statement(s) about the Organizational Environment is/are correct?

i. Internal factors include company objectives, management styles, physical resources, and technology used by the organization.
ii. External factors include suppliers, competitors, customers, intermediaries, and broader trends like social, economic, technological, political, and legal developments.
iii. The business environment is static and does not require continuous analysis or adaptation by the organization.
iv. The internal environment consists of elements that management can directly control, such as mission, value system, human resources, and company image.