After looking ‘inwards’ and identifying the drivers, the focus is now on the external analysis: the outside world. You learn to observe, analyze and interpret how the external environment influences your organization.
Contrary to the internal environment, the external environment is not ‘in control’ of one organization. Therefore, the organization must deal with the environment as-is. Opportunities might offer new perspectives on growth and profitability. Threats might materialize with negative effects on the organization. The identification of factors in the external environment (such as the economic, social, political and technological), as well as the identification of external stakeholders will be addressed.