Based On Strategic Management

QUESTION is : Using 2000 words, Explain the importance of analyzing and understanding the firms external environment.

NOTE: Using chapters 1 -3 from the REFERENCE below, please answer the above question by developing critical thinking and research skills by selecting and analyzing the relevant literature on the question and develop an argument followed by understanding and applying of concepts related to the question.

REFERENCE: Hanson, D., Hitt, M.A., Ireland, R.D., and Hoskisson, R.E. (2011). Strategic Management: Competitiveness and Globalization, Pacific Rim 6th Edition, Cengage Learning, Australia.