MGT499- W2 Post and Response

Emma Goodman

Chapter 3 

It is important for firms to study the external environment so they know what is happening around them. For example this will help them know if there are any threats and or opportunities concerning them. Understanding the external environment will give firms a competitive advantage. With COVID19 hitting, firms needed to be aware and adapt quickly. Some firms started curb side pick up and at home delivery before government orders. These firms were at an advantage over other firms that waited till they needed to change. Along with this if firms are already aware of the external environment and how their customers react they would know how to alter their business during a fast changing time that we are currently in. 

Chapter 4 

It is important to study the internal resources, capabilities, and activities of firms so that you know the core competencies. This will show the firms strengths and weaknesses. They can then be compared to their competitors based on their strengths and weaknesses. Knowing this will give us insight on where to improve and what we already and will continue to excel at. This will increase the core competencies of the firm. 

Matthew Cumberland

Chapter 3

It is important for organizations to study and understand their external environment because the external environment is constantly evolving which can produce both opportunities for and threats to the organization. If an organization does not study the external environment that it operates in, then it will be unable to adequately respond to new threats and opportunities that arise. An organization that does not understand the external environment that it operates in will likely fail to respond to threats and eventually fail completely.

Chapter 4

It is important for organizations to study their internal resources, capabilities, and activities because understanding these internal factors can tell an organization where/what their strengths and weaknesses are. If an organization knows its strengths, it can implement strategies to maximize these strengths to gain a competitive advantage. Conversely, knowing weaknesses can allow an organization to implement strategies to reduce or even remove its weaknesses to better protect itself for the future.