Environmental AnalysisIntroductionThere are three factors that play a primary role in deciding the constraints, opportunities and threats that any business will face. The remote environment is the first factor which brings together factors that have their origin beyond the operational situation of any company, such as technological and/or economic factors. The industry environment is the second factor that influences a company's prospects and comes from its industry environment, such as rivalry among competitors and the bargaining power of buyers and suppliers. The third and final factor is the operating environment which includes factors that influence a company's competitive situation, including factors such as competitive position, suppliers, customer base and creditors. These three sets of factors constitute the challenges that a particular business faces in its attempts to attract or acquire the necessary resources and to profitably market its goods and services (Pearce 2005). Remote Environment One factor in the remote environment for Wabtec is in the area of ​​technology. .To avoid obsolescence and promote innovation, a company must be aware of technological changes that could impact the industry (Pearce, 2005). Creative technological adaptations can suggest possibilities for new products, improvements to existing products, or manufacturing and marketing techniques (Pearce, 2005). A long-term goal that Wabtec must achieve in this area is product innovation. The company is expected to introduce distinctive and innovative new products in 2007 and beyond to support emerging consumer trends. Wabtec faces competition from Lockheed Martin, its largest competitor, in product innovation, which could have an effect on the organization in the coming years. Finding the right balance between research and development and a low cost and price strategy will require careful planning. Industry Environment The degree of competition in an industry depends on factors such as the threat of new competitors and/or the size of their current competitor. To establish a strategic agenda for dealing with its competitors, a company must understand how they operate in its industry and how they affect the company in its particular situation (Pearce, 2005). The threat of modern products or services is one of Wabtec's major concerns. As competitors such as Lockheed Martin gain ground on Wabtec, the company must maintain product differentiation at a competitive price and improve customer satisfaction. Wabtec should set a long-term goal of improving its research and development to help accelerate its growth and profits..