Given the Plethora of External Influences, Understanding the External Environment

question 10

Multiple Choice

Given the plethora of external influences, understanding the external environment requires managers to

• A)use a framework or a system that allows them to organize information and rank factors.
• B)monitor their rivals closely to detect signals of change in their strategies.
• C)use all existing techniques to gather and analyze information.
• D)work on the matter full-time.

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Definitions:

Elastic Demand

Elastic demand indicates that the quantity demanded of a good or service significantly changes in response to a change in price.

Necessity

Essential goods or services required for basic living and welfare of individuals.

Luxury

High-quality goods or services that are not essential but are highly desired and associated with wealth or indulgence.

Substitutes

Goods or services that can be used in place of each other to satisfy consumer needs or desires.