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

Which one of the following is a feature of the task (operating) environment of a firm, rather than its general (macro) environment?

Bargaining power of raw-material suppliers belongs to the task environment, because suppliers deal directly with the firm. Inflation, national demographics and tax legislation are general macro-environment forces that affect all businesses broadly rather than interacting with one firm directly.

  1. AInflation rate in the economy
  2. BDemographic profile of the national population
  3. CBargaining power of the firm's raw-material suppliersCorrect
  4. DChanges in national tax legislation

Explanation

The task environment consists of forces directly interacting with the firm, such as suppliers, customers, competitors and distributors. Inflation, demographics and tax law are broad forces affecting all firms and belong to the general environment. Hence supplier bargaining power is the task-environment feature.

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