John, the CEO of Tresnel Inc., learns that the government of one of his company's foreign markets has enacted a new law that limits the amount of profit it can make. He projects that this will result in future losses. If John researches the ________ environment, he can plan a strategy to deal with this situation.

Question

Quizplus · Accepted Answer

The fact that the government in one of Tresnel Inc.'s foreign markets has enacted a new law that limits the amount of profit it can make indicates a change in the political and legal environment. By researching this environment, John can plan a strategy to deal with the situation, such as lobbying for policy changes or exploring new markets. Economic, cultural and societal, business, and geographical environments may also influence the strategic planning process, but they are not directly relevant to the government's new law limiting profits.