Only use the resources of chapter 3, but do not quote.

The firm is Sears.

1. Study the external environment of your firm and its industry. Are any changes taking place in the macroenvironment that might have a positive or negative impact on the industry in which your firm is based?

2. Apply the PESTEL framework (page 67-72) to identify which factors may be the most important in your industry. What will be the effects in your industry? What strategic steps would you recommend to address the situation?

3. Which of the four competitive industry structures described on page. 83-86 comes closest to describing the competitive situation your firm and its part of its industry face? What does this tell you about how intense competition is likely to be?

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