Trends in the broader society that influence an industry and the firms in it are known as
A) the general environment
B) the competitive environment
C) the industry environment
D) the external environment

Question

Quizplus · Accepted Answer

The general environment refers to the broader societal trends and events that can significantly influence an industry and the firms operating within it. These trends include economic, technological, sociocultural, political, and legal factors that can create opportunities or threats for organizations. The competitive environment pertains to the specific industry players and the dynamics of competition at the industry level. The industry environment focuses on the factors specific to a particular industry, such as the bargaining power of suppliers and buyers, threat of substitutes, and barriers to entry. The external environment is a broader term that encompasses all factors outside the organization, including the general environment and the competitive environment.

Trends in the Broader Society That Influence an Industry and the Firms