Apricot Inc., an American food and beverage company, is devising strategies to expand its business in Austria. Jonathan, a manager at Apricot, believes that a PEST analysis is the best way to get a picture of the competitive landscape in Austria. Which of the following statements supports his belief?

Question

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A PEST analysis focuses on the Political, Economic, Social, and Technological external factors that could impact a business. It does not analyze internal business environments (A), reinforce old assumptions (B), or directly relate to cost structures (C). Instead, it helps understand the broader context, including cultural aspects (D), which can inform strategic decisions for operating in a new country like Austria.