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Analyzing and understanding your organization's external environment is an essential step within an organization's strategic planning. Based on the analysis, this will allow the organization
Analyzing and understanding your organization's external environment is an essential step within an organization's strategic planning. Based on the analysis, this will allow the organization to make decisions that will Aid in the growth of their business. Managers must consistently evaluate external environments for trends and events that can affect the environment. They must monitor changes that could affect the organization in a particular way, as no organization is immune to the effects of the outside world, which is why they must always be wary of all external factors. It is essential to understand the external environment so managers can identify the latest trends, which include technological innovations and critical success factors. Analyzing the competitive environment and identifying threats are also vital strategies when accessing external factors, as all these key points can create a realistic picture of the organization's current status. Managers must be able to base their decisions on facts with the data collected externally for outside factors
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