Marjorie Benton

Industry and macroeconomic environment

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Purpose: To discuss the external environment of the firm, PESTEL analysis, and the Porter Five Forces Model.

Assignment: Write a two paragraph (or more) analysis of the following question – Why is it so important that a company understand and remain highly responsive to the external environment? Can you discuss the external environment within the context of your company’s particular industry and macroeconomic environment? Use one facet of PESTEL analysis or one of the Porter Five Forces to describe a characteristic of your company’s external environment. It is important that you describe a real, specific example. You can use your company’s situation for this analysis. If you are not currently employed, you may describe a former employer or company. If security concerns preclude discussion of your current or former company, an example from the business press is acceptable.

Required materials to include on your discussion board post includes Chapter Three from the textbook and one of the Harvard Business Review articles assigned in Unit Two.

Textbook Citation: Gamble, et. al. (2021). Essentials of Strategic Management, Chapter 3;

Requirements: 2 paragraphs

Answer preview

           In light of the restrictions brought about by the pandemic, Amazon saw an opportunity to expand its services and its horizon in the market. To do that, it adopted factors present in the PESTEL analysis. One of the most important factors is the technological factors (Gamble et al., 2021). In this day and age, technology is the driving force of the global market. The needs of the consumers are met through extensive data analysis utilizing consumer preferences collected by digital companies. Subsequently, companies such as Amazon can use this technology to ensure that the needs of their consumers are met (Carlsson-Szlezak, Reeves & Swartz, 2021). Therefore, they should be in constant demand of new technologies that will ensure that they are more competitive in the delivery market. Therefore, the research and implementation of innovative technologies by Amazon have been a significant instigator towards its performance, thus giving it a competitive edge over other delivery companies.

[372 Words]

Industry and macroeconomic environment

Marjorie Benton

Firm’s competitive behavior

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Answer the below questions with no less than 150 words each.

1-According to the I/O model, what should a firm do to earn above-average returns?

2-Why is it important for a firm to study and understand the external environment.

3-Why it is important for a firm to study and understand its internal organization?

4-How do awareness, motivation, and ability affect the firm’s competitive behavior?

5-Why are mergers and acquisition strategies popular in many firms competing in the global economy?

Requirements:

Answer preview

The internal organization comprises decision-makers and communication members whose goals do not align with the objectives of the firm. To analyze the strengths and weaknesses of an organization, a firm focuses on the internal factors that help it meet the needs of its target market. Strengths refer to a firm’s core competencies that give it an advantage in meeting the target market needs (Zaynullina, 2020). Any strategy of analyzing the company’s strengths should be customer-focused because it can only be meaningful if it assists the firm in meeting customers’ needs. On the contrary, weaknesses are things that limit a company from developing or implementing its strategies to meet the market needs. Therefore, understanding the internal organization leads to a more efficient and effective restructuring of the company’s organizational structure when there are changes in the business environment. It also leads to fewer conflicts and politics within the organization during decision-making and implementation.

[993 Words]

Firm’s competitive behavior