Question

Identifying the strategic issues a company faces and compiling a "worry list" of problems and roadblocks is an important component of company situation analysis because

A) without a precise fix on what problems/issues a company confronts, managers cannot know what the industry’s key success factors are.
B) the "worry list" sets the management agenda for taking actions to improve the company’s performance and business outlook.
C) without a precise fix on what problems/roadblocks a company confronts, managers are less clear about what value chain activities to benchmark.
D)the "worry list" helps company managers clarify their thinking about how best to modify the company’s value chain.
E) these issues and obstacles must be cleared before management can focus clearly on what is the best strategy for the company to pursue.

Answer 1

Identifying the strategic issues a company faces and compiling a 'worry list' of problems and roadblocks is important in company situation analysis because it helps managers understand key success factors, sets the management agenda, and ensures a clear focus on the best strategy. Correct options are A), B) and E)

Step-by-step explanation:

The strategic issues a company faces and compiling a 'worry list' of problems and roadblocks is an important component of company situation analysis because:

1. A) Without a precise fix on what problems/issues a company confronts, managers cannot know what the industry’s key success factors are. For example, if a company does not identify the problem of outdated technology, it may fail to recognize that investing in innovation is a key success factor in its industry.
2. B) The 'worry list' sets the management agenda for taking actions to improve the company’s performance and business outlook. By prioritizing the identified issues, managers can focus on developing strategies to address them and drive overall improvement.
3. E) These issues and obstacles must be cleared before management can focus clearly on what is the best strategy for the company to pursue. For instance, if a company is facing financial difficulties, it needs to resolve them before deciding on a growth strategy.