Skip to content

CS Professional · Strategic Management and Corporate Finance · Analyzing the External and Internal Environment

Sunrise Foods Ltd., a packaged snacks maker, studies its closest rival by examining the rival's current strategy, its assumptions about the market, its goals and its resources. Which analysis is Sunrise Foods carrying out?

Sunrise Foods is building a competitor profile by assessing the rival's goals, assumptions, current strategy and capabilities. This framework helps predict how the rival will respond to moves such as price cuts or launches, so Sunrise can plan its own strategy accordingly.

  1. ACompetitor response profile analysis covering strategy, assumptions, goals and capabilitiesCorrect
  2. BRatio analysis of its own balance sheet
  3. CBreak-even analysis of its own products
  4. DAnalysis of the lease terms of its factory

Explanation

Studying a rival's goals, assumptions, current strategy and capabilities is the standard framework for building a competitor profile and predicting its moves. The other options look only at Sunrise's own internal numbers or assets, so they do not analyse a competitor.

Did you get it right without looking?

One question tells you little. A timed set on Analyzing the External and Internal Environment shows your real accuracy, how long you take and where you lose marks.

Practise Analyzing the External and Internal EnvironmentFree diagnostic mock

More Analyzing the External and Internal Environment questions