External Analysis: Managers in every organization need to conduct an external analysis.
Influential factors such as competition, pending legislation, and labor supply are included in the external environment.
After analyzing the external environment, managers must assess what they have learned in terms of opportunities and threats.
Opportunities are positive trends in external environmental factors; threats are negative trends in enironmental factors.
Because of different resources and capabilities, the same external envieronment can present opportunities to one organization and pose threats to anither.