Question

7. An analysis of the external environment enables a firm to identify
(A) Strengths and opportunities​

Answer 1

Explanation:

An External Analyis (or Environmental Analysis) is an objective assessment of the changing world in which an enterprise operates, in order to have an 'early warning system' for identifying potential threats and opportunities.

Answer 2

An analysis of the external environment enables a firm to identify Opportunities and threats​.

• The external environment survey of a firm enables to analyze the various threats and opportunity the environment can give to the firm.
• the recent market trends , financial stability of the market and new policies are few factors which can determine the threats it can posed to a firm as well as the opportunity it can provide to a firm.
• this also, proves beneficial to the internal factors of the company helping it grow and develop.
• opportunities can be under taken and threats could be resisted by working on strengths and weaknesses (or the internal factors ) of a firm.

What is the purpose of analysis of external environment?

• The primary purpose of external analysis is to determine the opportunities and threats in an industry or any segment that will drive profitability, growth, and volatility.

What is the external environment?

• An external environment is a group of factors or conditions that are outside the organization but affect it in some extent.
• In business, this term commonly applies to elements related to out of control dimensions such as society, economy, regulations and political system.

What are external environmental factors?

• External environment factors are elements that are outside of the company's internal environment and they could impact its operations.
• The external forces could either present challenges in your existing operations or help your business.

Hence, A corporation can uncover opportunities and challenges by analysing the external environment.

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