Identify a true statement about the role of external analysis in creating a business strategy.
A)It involves standardized surveys to gauge employee satisfaction.
B)It involves an examination of the competition and the forces that shape industry competition and profitability.
C)It involves the examination of a company's set of resources and capabilities that can be deployed to deliver unique value to customers.
D)It involves the study of a firm's operational practices to improve efficiency.

Question

Quizplus · Accepted Answer

External analysis involves the examination of the competition and the forces that shape industry competition and profitability, such as market trends, consumer behavior, and socioeconomic factors. It helps companies identify opportunities and potential threats to their business strategy. The other options mentioned, such as employee satisfaction surveys, examining a company's resources and capabilities, and studying operational practices, are all important components of internal analysis, which also plays a role in creating a business strategy.

Identify a True Statement About the Role of External Analysis