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The Reckless and the Brave

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Submitted By maryjosephine25
Words 939
Pages 4
PONO, KATRINA L.
2013-00434-MR-0
BSA – III

TAKE HOME QUIZ ON BUSINESS POLICY AND STRATEGIC PLANNING

1. Why is it important for a firm to study and understand its internal environment?
It is important to study and understand the internal environment because it will help the management identify the entity’s strengths, weaknesses, opportunities, and threats. The entity may use its’ strengths and foreseen opportunities to be more efficient and effective in competing with others whether it is inside or outside the industry. The entity may also either avoid or reduce the impact from weaknesses and threat and utilize these to improve the entity itself.
Studying and understanding the internal environment may also yield the entity’s objectives. After reflecting the entity’s SWOT, the top management will be able to set both short-term and long-term objectives and goals along with which should be done first and which will be the most beneficial to the entity.
Lastly, a sound internal environment is one of the greatest factors for an entity to continue in its operations. Like a human, it can do task effectively and efficiently if it’s fully functional, organized, and planned inside and as a whole.

2. What is value? Why is it critical for the firm to create value? How does it do so?
Value, according to Merriam-Webster’s Dictionary, is the relative worth, utility, or importance of something. It is measured by a product‘s performance characteristics and by its attributes for which customers are willing to pay. Creating or assigning value to an activity or to an aspect of the entity is important because it will the entity identify how much cost they input in an activity and what or how much return they would want to have. It will also identify which would be the primary activities the entity should run and which should be the last.

3. What are the

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