An external environmental analysis studies information about a business's industry, competition, and political and social environments. These factors affect the business but are out of its control, such as when a new political party takes office and changes regulations, in turn requiring the business to invest in new equipment or modify its products. An analysis of the external environment includes a list of factors in a business's external environment and their influence on the business. It further discusses opportunities the business can pursue and threats that could negatively impact it. This type of analysis concludes with a plan on how the business can take advantage of opportunities and either overcome or minimize its threats.