Why is it important for a firm to study and understand the external environment?

Which are most important among the economic, technological, social and demographic, political and ecological remote environmental factors impacting your own industry & firm?  Make sure to explain your strategic thinking about your firm and be as specific as possible.

What are the differences between the general environment and the industry environment? Why are these differences important?

What is the external environmental analysis process (four parts). What does the firm want to learn when using this process?

Explain the differences among the seven segments of the general environment. Why are these details of interest to organizations?

How do the five forces of competition in an industry affect its profitability potential?

Why is it important for a company’s design to include sustainable processes?

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