Managerial Economicsintermediate
Match each environmental factor with its category.
Answer
Worker skills - Internal factor, A change in government tax policy - External factor, A firm's brand reputation - Internal factor, A flood affecting regional production - External factor
Explanation
### The pairs
| Item | Matches | Why |
|---|---|---|
| Worker skills | Internal factor | Skills are part of the organization's resources and can contribute to its strengths or weaknesses. |
| A change in government tax policy | External factor | Government policy is outside an individual firm's direct control and can affect its costs or decisions. |
| A firm's brand reputation | Internal factor | Reputation is an organizational asset that can shape a firm's strengths or weaknesses. |
| A flood affecting regional production | External factor | A natural event lies outside the firm's control and can disrupt operations. |
### Terms
- **Internal factor**: A condition within an organization that helps shape its strengths or weaknesses.
- **External factor**: A condition outside an organization that may create opportunities or threats.
### Remember
Ask whether the organization directly controls the factor to distinguish internal from external conditions.
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