An external analysis, the second step of the strategic management process, helps identify ________.
A)the products that a company makes
B)the long-term goals of a company
C)a company's opportunities and threats
D)a company's concern for its employees

Question

Quizplus · Accepted Answer

External analysis helps identify a company's opportunities and threats by examining the external factors such as economic, social, cultural, legal, technological, and political factors that can positively or negatively impact the company's performance. It helps the company to anticipate changes in the environment and to take advantage of opportunities and/or protect against threats. A and B are incorrect because they are related to internal factors of the company, whereas, D is an incorrect choice as external analysis does not directly involve a company's concern for its employees.

An External Analysis, the Second Step of the Strategic Management