External Operating Environment: For the analysis of the external operating environment, select four of the seven segments of the external environment (demographic, economic, political-legal, social-cultural, global, technological, and physical environment) and identify early indicators of environmental changes and trends that may affect the organization. For examples of these segments, please see Table 2.1, page 39, "The External Environment," in Chapter 2 of the course textbook. Internal Operating Environment: For the analysis of the Internal Operating Environment, select four of the seven functional areas of the organization (distribution, human resources, management information systems, marketing, management, manufacturing, and research and development) and assess one or two of the functional area's capabilities. For examples of functional capabilities, please see Table 3.3, page 86, "Examples of Firms' Capabilities," in Chapter 3 of the course textbook