Analysis of external opportunities and threats
The main objective in this is to help companies recognize major developments and future implications. External analysis gives possible threats and opportunities for further expansion.
These elements are powers that associations can’t control, however so as to be fruitful they must know about them. Organizations must be conscious and always watch conditions in its condition to seize openings and to find dangers. Openings emerge when associations can end up gainful from the abuse of chances and advantage from these conditions in its condition. Organizations can get an edge over its rivals by abusing these chances; in this way, organizations ought to take a stab at removing the best conceivable favorable position from circumstances. On the other hand, while abusing openings, an organization should endeavor to limit and keep away from dangers in its outer condition. On the off chance that an organization isn’t set up for these conditions, it can, in the more regrettable situation, endanger the entire business. Along these lines, organizations ought to be set up to handle these outside dangers with the goal that they won’t come as a shock and after that it tends to be past the point where it is possible to respond. (Hitt et al. 2007 pp. 37-38).
SWOT analysis is a high-level used at the beginning of an organization strategic planning, below is an example of SWOT analysis from Australia state on external environment.