The external environment is what Dante is monitoring its developments.
The external environment includes the factors or conditions outside the business with impacts on its operations. The external factors in the environment originate from the society, economy, regulations, and the political system.
The external environment also impacts the organization's profitability, decisions, and performance. They present both threats and opportunities that Dante can factor into his decision-making.
Thus, Dante needs to monitor developments in the external environment to ensure that the organization does not run out of tune with factors outside its control.
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