Why Does External Analysis Usually Start with the Macro- Environment

question 2

Multiple Choice

Why does external analysis usually start with the macro- environment and proceed to industry analysis?

• A) Because knowledge of the wider environment facilitates a more grounded interpretation of the operating environment as the wider context shaping the industry is understood better.
• B) This is just a convention that has developed over time. It does not matter what order the analysis is done in.
• C) Because managers know about the operating environment already but need to study those issues they do not interact with on a daily basis such as PEST factors.
• D) Because it is important that the data on the operating environment data is very up- to- date so this should be collected last.

Recognize fair use exceptions in the context of copyrighted materials.

Understand the legal time frames associated with provisional patents and their development into working prototypes.

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Understand the documentation and requirements for proving employee eligibility and tax withholdings in the United States.

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Definitions:

Foreign Competition

The presence and impact of producers from other countries competing in a domestic market.

Anticompetitive Monopolist

A single seller in a market who uses their dominant position to prevent or reduce competition through unfair practices.

Antitrust Laws

Regulations established by governments to prevent large businesses from monopolizing certain markets, ensuring fair competition.

Industry Structure

The characteristics and organization of an industry, including the number and size of companies, entry barriers, and level of competition.