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Homework answers / question archive / Automobile manufacturers must comply with regulations set by the National Transportation and Safety Board

Automobile manufacturers must comply with regulations set by the National Transportation and Safety Board

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Automobile manufacturers must comply with regulations set by the National Transportation and Safety Board. In the context of situation analysis, which of the following macro-level external environmental factors does this exemplify?

a) sociocultural/demographic,

b) firm structure and systems,

c) political, legal, and ethical,

d) firm resources,

e) threat of new entrants.

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The correct answer is c) political, legal, and ethical.

  • The regulations set by the National Transportation and Safety Board (NTSB) form a compliance issue through legislation for firms (thereby also setting ethical standards) that will change depending on the government that is in power.

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