The global recession forced thousands of firms into bankruptcy. Does this fact alone confirm that external factors are more important than internal...

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.