Understanding the external environment of a firm requires one ultimately to identify
A)the opportunities to make profit in the industry.
B)the five forces identified by porter's model.
C)the barriers to entry and to exit in that industry.
D)the expected level of profit in the mid-term for that industry.

Question

Quizplus · Accepted Answer

Understanding the external environment involves identifying opportunities for profit, as it helps the firm to strategize and position itself effectively in the industry.

Understanding the External Environment of a Firm Requires One Ultimately