Strategic
Management -
Chapter 2:
External
Environment
latest version
fullly solved &
updated (graded
A+)
3 factors that affect the external environment - answer 1. Genera
environment
2. Industry environment
, 3. Competitor environment
General environment - answer the general environment determines
the SIZE and GROWTH of an industry
Is composed of dimensions in the broader industry
Is it based on the PESTEL analysis and the global segment
Looks at the political, economic, sociocultural, technological,
ecological, and legal environment
P for Political - answer actions of government bodies
concerned with how organizations try to influence governments
Examines government policies, regulations, trade restrictions,
political in/stability, tax policies, tariffs,
E for Economic - answer refers to the nature and direction of the
economy in which the firm competes or may compete
Favorable economies: ones that are stable and have strong growth
potential
Examines economic growth, interest rates, inflation rates, exchange
rates
S for Social factors - answer Has to do with cultures, norms, values
and demographic trends
Management -
Chapter 2:
External
Environment
latest version
fullly solved &
updated (graded
A+)
3 factors that affect the external environment - answer 1. Genera
environment
2. Industry environment
, 3. Competitor environment
General environment - answer the general environment determines
the SIZE and GROWTH of an industry
Is composed of dimensions in the broader industry
Is it based on the PESTEL analysis and the global segment
Looks at the political, economic, sociocultural, technological,
ecological, and legal environment
P for Political - answer actions of government bodies
concerned with how organizations try to influence governments
Examines government policies, regulations, trade restrictions,
political in/stability, tax policies, tariffs,
E for Economic - answer refers to the nature and direction of the
economy in which the firm competes or may compete
Favorable economies: ones that are stable and have strong growth
potential
Examines economic growth, interest rates, inflation rates, exchange
rates
S for Social factors - answer Has to do with cultures, norms, values
and demographic trends
