Which Method Should Be Used to Study the Environment: Porter's

question 33

Essay

Which method should be used to study the environment: Porter's five forces model of competition or the PEST model?

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Definitions:

Equity Capital

Funds that are raised by a company in exchange for a share of ownership in the company.

Network Density

A measure of the connectedness in a network, showing the ratio of actual connections to the total possible connections between nodes.

Network Diversity

The variety and range of connections an individual or organization has, including different industries, backgrounds, and expertise.

Symbolic Ties

Relationships or connections that are not based on formal agreements but rather on shared values, trust, or identity.