Which of the following is listed as a source of critical success factors?

• A. Industry the business is in
• B. Company and its situation in industry
• C. Environment
• D. Temporary organisational factors

Answer: (C)

Critical success factors are the areas where performance must be outstanding for the business to succeed given external conditions. The external environment sets the pressures, opportunities, and constraints that determine what capabilities and activities are truly essential. Because those external forces shape what success requires, the environment is where these critical factors originate.

The industry and a firm’s position within it influence what those factors look like, but they are not the source itself in this framing—they’re context that helps define the CSFs. Temporary organizational factors aren’t enduring priorities and wouldn’t form the stable set of areas a strategy must get right to win.