BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -In general, there are three major parts of external environment in business includes the general environment, the industrial environment and the competitor’s environment.

Detailed explanation-2: -On a macro scale, external analysis includes macroeconomic, global, political, social, demographic, and technological analysis. 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.

Detailed explanation-3: -A PEST analysis (or STEP analysis) invites you to list all the relevant external forces using four headings: Political, Economic, Sociological and Technological. These are useful headings; it doesn’t matter that some items might be both political and economic (eg taxation and exchange rates).