We cannot consider external factors without internal factors or vice versa. External factors set the stage for what a company must deal with, but internal factors largely determine the extent to which a company is able to perform well in a given circumstance. While external factors may set a company in a bad position, astute strategic planning can allow a company to adapt to changing market circumstances and continue to thrive.
Internal factors largely shape what options a company has in adapting. Thus internal and external factors go hand-in-hand, and it doesn't make sense to talk about one or the other as more important. From developing new products, improving quality of goods or services, or shifting the kinds of products produced or how they're distributed, attentiveness to internal factors lets you know what you have to work with in strategic planning while external factors can suggest which of your possible paths is most likely to be successful.
Not necessarily. It depends on the...
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