Environmental Analysis is described as the process which examines all the components, internal or external that has an influence on the performance of the organization. Environmental analysis helps in the detection of threats at an early stage that assist the organization in developing strategies for its survival. Add to that, it identifies opportunities, such as prospective customers, new product, segment and technology, to occupy a maximum share of the market than its competitors. The external metrics help in responding to the environment in a positive manner and also aligning the strategies according to the objectives of the organization.
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