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100-word minimum for responses TWO References are Required for your initial post and ONE Reference for Each Response You MUST have a reference page at the end of your post In-text citations are Required (No Exceptions) reply to discussion post of 2 of my classmates 100 words 1 reference (discussion 1)A business being able to understand its environment becomes vital as its the source from which an organization draws the resources it needs to thrive, and it is also the arena that supports or threatens its success (Kennedy, 2020 et al., p. 56). The environment matters for three primary reasons. First, companies rely on external resources such as employees, labor, raw materials, capital, and information to operate effectively (Kennedy et al., 2020, p. 56). Without the consistent access to these inputs, organizational performance becomes unstable and longterm success is compromised. Second, the environment presents both threats and opportunities (Kennedy et al., 2020, p. 56). For example, Pret A Manger, a Londonbased coffee chain with locations across the United States, faced severe environmental pressures during the COVID19 pandemic (Pret A Manger, n.d.). As consumer traffic declined and public health restrictions intensified, the company was forced to close nearly all of its Boston and Chicago shops, leaving only one location open (Pret A Manger, n.d.). This demonstrates how external conditions can swiftly transform a companys strategic position. Third, the environment forms strategic planning (Kennedy et al., 2020, p. 57). Executives must navigate environmental constraints when deciding whether to enter new markets, launch new products, or restructure operations (Kennedy et al., 2020, p. 57). These decisions depend heavily on political stability, cultural expectations, technological change, and other external forces. In my view, the most important of these three reasons is the organizations dependence on resources. A company can adapt to threats, seize opportunities, and revise its strategy, but none of that is possible without the foundational inputs required to function. When resources become scarce or inaccessible, organizational success is immediately compromised (Kennedy, 2020). A PESTLE analysis is a paradigm that assists organizations in making informed decisions based on its external environment (PESTLE, 2022). There are six elements involved in the analysis: politics, economics, sociology, technology, legal and environmental. Political factors such as government regulations and policy changes; economic conditions like inflation, and consumer spending; social influences including cultural norms, demographics, and lifestyle trends; technological developments such as innovation and automation; legal requirements involving labor laws, safety standards, and compliance obligations; and environmental components like sustainability expectations and climate related impacts (PESTLE, 2022). While all six of these elements configure the context in which a organization operates, their significance varies by industry and location (PESTLE, 2022). Some sectors such as manufacturing or food service may be heavily affected by environmental or legal factors; whereas other industries may be more sensitive to technological or economic shifts. Still, each element contributes to a comprehensive understanding of the external environment (Kennedy et al., 2020, p. 53). References: PESTLE analysis. (2022). Instructure.com. Pret A Manger. (n.d.). COVID19 response. Links to an external site. Kennedy, R., Jamison, E., Simpson, J., Kumar, P., Kemp, A., Awate, K., & Manning, K. (2020). 3.3 Evaluating the General Environment. Strategic Management. Virginia Tech Publishing. Kennedy, R., Jamison, E., Simpson, J., Kumar, P., Kemp, A., Awate, K., & Manning, K. (2020). 3.1 Introduction. Strategic Management. Virginia Tech Publishing. Kevin Randall Feb 4 10:33am | Last reply Feb 4 10:34am Reply from Kevin Randall The atmosphere of an organization is important since it directly affects how businesses excel, compete, and expand. The environment is significant for three main reasons, according to strategic management theory. First, vital resources like labor, capital, raw materials, and technology are found in the environment. Organizations cannot function efficiently or maintain a competitive edge without access to these resources (Hitt et al., 2020). To stay competitive, managers must match strategy to external circumstances because misalignment frequently results in deteriorating performance or failure. The environment’s ability to create possibilities and threats is, in my opinion, the main reason it matters. Although resources are necessary, their effective use depends on one’s capacity to identify and react to outside opportunities and threats. Businesses frequently lose market share or leave the industry completely when they are unable to adjust to environmental changes, such as technological disruption or regulatory changes (Hitt et al., 2020). One popular method for examining the macroenvironment is the PESTEL framework. Every letter stands for a significant outside influence. P stands for political aspects, which include laws and policies. E stands for economic variables, such as interest rates, inflation, and economic expansion. S stands for social variables, which include lifestyle trends, culture, and demography. T stands for technological elements, such as innovation and advancements in technology. Environmental concerns, including sustainability and environmental restrictions, are represented by the letter E. L stands for legal considerations, such as consumer protection and labor legislation. Despite their relevance, not all organizations place equal emphasis on the six PESTEL components. The industry, size, and strategic goals of the company determine how important each component is. For instance, manufacturing organizations might find that environmental considerations are crucial, whereas software companies would find that technological factors are more significant. Therefore, companies should concentrate on the PESTEL factors that have the biggest impact on their operations and competitive position (Dess et al., 2021). References Dess, G. G., McNamara, G., Eisner, A. B., & Lee, S. H. (2021). Strategic management: Text and cases (10th ed.). McGraw-Hill Education. Links to an external site. Hitt, M. A., Ireland, R. D., Hoskisson, R. E., & Duane, R. (2020). Strategic management: Competitiveness and globalization (13th ed.). Cengage Learning. Links to an external site. discussions2