BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -External analysis, also called environmental analysis, is the process by which businesses objectively assess the changes in their industry and the broader world that could affect their current business operations. Companies do this to ensure they can adapt to changes and continue to succeed within an industry.

Detailed explanation-2: -The correct answer to the given question is True. Opportunities are positive external environmental trends or changes which may be leveraged by an organization to improve its performance. On the contrary, threats are negative external environmental trends or changes which should be avoided by the organization.

Detailed explanation-3: -External analysis means examining the industry environment of a company, including factors such as competitive structure, competitive position, dynamics, and history. On a macro scale, external analysis includes macroeconomic, global, political, social, demographic, and technological analysis.

Detailed explanation-4: -Analyzing your company’s external environment is a critical step in preparing a strategic plan. This is a complex task because it involves collecting a variety of data to get an accurate picture of the situation. Based on this analysis, the company can then make sound decisions to further its growth.