Elaborate a reply for this forum discussion post

It is important for a firm to study and understand the external environment because that environment can determine what strategies the company will need to pursue in the future. The external environment also influences the firms strategic options. In other words, it is important for a firm to study and understand the external environment because it can help determine the firms strengths and weaknesses in order to become more successful. By knowing the companys strength, it can help them reach strategic competitiveness and by being informed on the companys weakness they can avoid threats that may hinder the companys strategic competitiveness. According to the textbook firms can analyze their firms external environment by scanning, monitoring, forecasting, and assessing. With scanning firms can identify early signs of the companys potential changes and trends. By monitoring they can detect any changes and trends. With forecasting projections of what might happen, and how quickly, as a result of the events and trends detected through scanning and monitoring. By assessing firms can determine the timing and significance of the effects of environmental changes and trends that have been identified. A firm can hope to learn information on their firm through scanning and monitoring the trends and changes. Projecting and assessing those changes and trends. These four parts of the external environment are crucial to the firms efforts to recognize and evaluate opportunities and threats a firm may have. If a firm learns these four parts and applies them to their firm they are likely to have a successful company as these four parts will aid in their success.