The three parts of the external environment that affect a firm's strategic actions are:
A) economic, political, and legal.
B) general, industry, and competitor.
C) industry, business, and product.
D) local, national, and global.

Question

Quizplus · Accepted Answer

The external environment has three parts: the general environment, the industry environment, and the competitor environment. The general environment includes economic, political, and legal factors that affect all organizations. The industry environment includes factors specific to an industry, such as supplier power, buyer power, and the threat of new entrants. Finally, the competitor environment includes the direct competitors of the firm. Thus, the answer is B, as it correctly identifies the three parts of the external environment that affect a firm's strategic actions.

The Three Parts of the External Environment That Affect a Firm's