Question

Before making the decision to invest in Uber, managers at Toyota undoubtedly conducted an internal analysis. In order to choose the strategy that will enable their company to attain a sustained competitive advantage through this decision, in what other activity would Toyota managers have engaged in conjunction with this internal analysis?
a. The support of C-level management and majority stockholders
b. Nothing - an internal analysis is sufficient on its own.
c. An analysis of the company's external environment
d. An analysis of the company's finances and operations

Answer 1

Answer: c. An analysis of the company's external environment

Explanation:

Apart from the internal analysis conducted by Toyota, it is vital for the organization to analyze its external environment.

We should note that the external environment of a business is made up of the legal, social, economic, demographic, political secturs etc.

To achieve organizational goals,buts paramount to analyse both the internal and the external environment.