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In developing a plan, decision makers must scan their external environment which consists of three elements. First, one must evaluate the remote environment. This consists of economic, political and technological factors. Some examples are gross domestic product, profits, inflation, and unemployment rates. These are also known as macroeconomic factors. Another component of the external environment is industry environment. This consists of competitiveness among rivalries, the availability of substitutes, and entrance barriers. The final component is the operating environment. This comprises of suppliers, amount of competitors, labor, and customer base...
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