The remote environment has a variety of factors that compromise any type of firm’s operating situation. “The remote environment comprises factors originating beyond, and usually irrespective of, any single firm’s operating situation—economic, social, political, technological, and ecological factors” (Pearce & Robinson, 2005). As the world changes so do, the trends with clothing books and other leisure activities that people like to do. This type of environment presents the firm’s with opportunities threats and constraints. In the economy today it is hard for contractor has to keep their business going because of the slow times. For example in Gatlinburg Tennessee there are usually a few lay offs because of the slow activity during the winter months. Being in construction during these down times is not an easy task because many people or businesses are not looking for repairs or improvements for the next season. The industrial environment has factors that influence a firm’s prospects originates within the environment of the industry including the entry barrier’s competitor rivalry the availability of substitutes and the bargaining power of buyers and suppliers. The operating environment comprises factors that influence a firm’s immediate competitive situation along with competitive position customer profiles creditors suppliers and the labor market. All of these factors will create challenges that the business must face throughout the experience. This will allow the firm to attract or acquire the needed resources and allow the business to earn a profit by marketing the goods or services that they offer.
Pearce, J. A., II, Robinson, R. B., Jr. (2005). Strategic management: Formulation, implementation, and control (9th ed.). New York: McGraw-Hill Irwin.