Choosing a firm's product line and scale of operation are internal decisions that management can generally control.

### Why this is right Management normally decides what business to enter, what products to offer, and how large an operation to establish. These are internal choices, although external conditions can constrain which choices are practical. ### The concept Internal decisions fall within the organization’s decision-making authority. Examples include product choice, firm size, technology, pricing, promotion, investment, profit retention, and inventory. External conditions, such as regulation or exchange-rate changes, originate outside the firm and cannot be directly controlled by its managers. ### Terms - **Scale of operation**: the size or capacity at which a business operates. ### Remember Management controls many operational choices, but it does not control the surrounding environment.