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Question

The purpose of analysis of external environment is to identify ________.

A
strengths and opportunities
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B
strengths and weaknesses
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C
weaknesses and threats
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D
opportunities and threats
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Solution

The correct option is D opportunities and threats
The purpose of analysis of external environment is to identify opportunities and threats. The external environment of an organization comprises all entities that exists outside the boundaries, but have significant influence over its growth and survival. An organization has no or little control over its external environment but needs to constantly monitor and adapt to these external changes.

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