John is a business student who is interning at a large corporation. He is responsible for analyzing financial reports and identifying trends. He notices that the company has been experiencing a decline in profits over the past year. He asks for your advice on how to address the issue.

John should conduct a financial ratio analysis to identify the specific areas of the business that are contributing to the decline in profits. He may also want to consider conducting a SWOT analysis to identify any internal or external factors that may be affecting the company's profitability. Once the issues have been identified, he can work with the company's management to develop a cost control strategy that addresses the specific issues. This may involve reducing expenses, increasing revenues, or both. For example, the company may need to increase its marketing efforts to attract more customers or reduce its production costs by implementing more efficient production processes.

1. Explain the importance of reviewing the company's pricing strategy when addressing declining profits.
2. What type of analysis should John perform to understand changes in customer behavior or market demand?
3. Name one external factor that could influence a company's profitability and might be relevant to the situation John is dealing with.
4. List two potential factors that might have contributed to the decline in profits at the corporation.