Answered: Why is it important for a firm to study…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Question

Why is it important for a firm to study and understand the external environment?

Expert Solution

Step 1: Introduction

The external environment of a business is the factor that is external to an organization and has the potential to affect the day-to-day working of an organization. These factors are not in the direct control of the business. An external environment contains all the factors outside the organization and impacts the operations of a business.

The following are the different types of factors in the external environment: Technological factors, economic factors, political and legal factors, demographic factors, social factors, competitive factors, etc. All these factors have an impact on the organization.