How Can Managers Understand the External Environment? Give an Example

question 137

Essay

How can managers understand the external environment? Give an example of an opportunity and a threat that environmental scanning might identify for a suntan lotion company.

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Definitions:

Standard Deviation

A metric that gauges the extent to which a collection of numbers is spread or varies.

Variance

A measure of how spread out a set of data is, specifically, the average of the squared differences from the mean.

Compute

To calculate or process information by performing mathematical operations, often using a computer.

Unbiased Estimates

Statistical estimates that are expected to be equal to the true value of the parameter being measured, not systematically over or underestimating the true value.