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1) Why is it important for a company to study and understand the external environment?
2) Which of the factors in the external environment do you think is currently having the biggest impact on domestic manufacturers and why? Does your answer depend upon the industry? Why or Why not?
3) Imagine that you are a higher education consultant and you have been asked to help Adrian College develop a strategic plan. Scanning, monitoring, forecasting, and assessing are the four parts of the external environmental analysis process. Effectively using this process can help identify opportunities and threats. One of the first steps in developing the plan is to analyze the external environment. Apply the Five Forces of Competition Model to Higher Education, specifically Adrian College, and analyze the threat of new entrants, substitute products, bargaining power of supplier and buyers, and the rivalry among competing colleges from low to high and explain. Explain your reasoning and make note of any suggestions you may have for the college.
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