The remote environment has a variety of factors that compromise any firm’s operating situation. “The remote environment comprises factors originating beyond, and usually irrespective of, any single firm’s operating situation—economic, social, political, technological, and ecological factors” (Pearce & Robinson, 2005). As the world changes so, do the trends and anything else you can think of in the world today. When you stop and look at all the different clothing, books, and other leisure activities people like to do. This type of environment presents the firms with opportunities, threats, or constraints. In this economy today some, companies may find it hard to keep people on staff. For example, in Gatlinburg, Tennessee, there are usually a few layoffs because of the decline in activity during the winter months. Being in construction during these downtimes is not an easy task because many people or businesses are not looking for repairs or improvements for the next season. The industrial environment has factors that influence a firm’s prospects that originate within the environment. Everyone in the technology industry tries including, the entry barrier’s competitor rivalry the, availability of substitutes, and the bargaining power of buyers; and suppliers. The operating environment comprises factors that influence a firm’s immediate competitive situation along with competitive positions, customer profiles, creditors, suppliers, and the labor market. All of these factors will create challenges that the business must face throughout the experience. Your company needs to allow the firm to attract or acquire the resources your company needs. Your company is in it to earn a profit by marketing the goods or services they offer.
Pearce, J. A., II, Robinson, R. B., Jr. (2005). Strategic management: Formulation, implementation, and control (9th ed.). New York: McGraw-Hill Irwin.