CSEET · Economic and Business Environment · Business Environment
A textile exporter in Surat reviews its position and lists: (i) outdated machinery, (ii) strong brand recall among buyers, (iii) rising cotton prices due to a poor monsoon, (iv) a new free trade agreement lowering tariffs in a target market. Which of these are internal factors?
Only outdated machinery and strong brand recall are internal factors, because they lie within the firm and reflect its weaknesses and strengths. Cotton price rises from a poor monsoon and a free trade agreement are external opportunities or threats beyond the firm's control.
- A(i) and (ii) onlyCorrect
- B(iii) and (iv) only
- C(i), (ii) and (iii) only
- D(ii) and (iv) only
Explanation
Outdated machinery and brand recall belong to the firm itself and are internal strengths or weaknesses. Cotton prices driven by monsoon and a free trade agreement arise outside the firm, so they are external, being an economic or natural factor and a political-legal factor respectively. Option (iii) is wrongly included in the third choice.
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