Analyzing the internal environment enables a firm to determine what it can do by identifying what opportunities exist.

Question

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Analyzing the internal environment helps a firm to determine its strengths and weaknesses, which in turn helps to identify opportunities and limitations, allowing the firm to determine what it can do. It provides a clear understanding of the firm's capabilities and resources, which enables it to devise strategies and take advantage of opportunities.

Analyzing the Internal Environment Enables a Firm to Determine What