Financial ManagementQuestion 5513 of 217
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16. In the framework of strategic analysis, which one is a constituent of internal analysis?

Options

ACompetitor analysis
BDeterminants analysis
CMarket analysis
DScenario analysis FINANCIAL MANAGEMENT AND STRATEGIC MANAGEMENT Answer Key MCQ No. Correct Option
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Correct Answer

Option BDeterminants analysis

All Options:

  • ACompetitor analysis
  • BDeterminants analysis
  • CMarket analysis
  • DScenario analysis FINANCIAL MANAGEMENT AND STRATEGIC MANAGEMENT Answer Key MCQ No. Correct Option

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Detailed Solution & Explanation

Correct Answer: Option **B** Explanation: In strategic analysis, the framework is divided into internal and external analysis:
1. **Internal Analysis** focuses on assessing the firm's own resources, capabilities, strengths, weaknesses, performance, and strategic constraints. A key constituent of internal analysis is **Determinants Analysis** (which evaluates the determinants of strategic options, such as past and current strategies, financial constraints, and organizational capabilities). 2. **External Analysis** focuses on factors outside the firm. Its constituents include **Competitor analysis**, **Market analysis**, and **Environmental/Scenario analysis**.
Therefore, Determinants analysis is a constituent of internal analysis.
Hence, **Option B** is the correct answer.

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