The first part of an external analysis is to
A)research potential substitutes.
B)develop a competitive edge.
C)identify potential customers.
D)determine in which industry the new business will compete.

Question

Quizplus · Accepted Answer

The first part of an external analysis is to determine in which industry the new business will compete. This is because it sets the foundation for understanding the competitive landscape, identifying potential competitors, and analyzing the industry's opportunities and threats. Without knowing which industry the business will operate in, it is impossible to conduct a comprehensive external analysis.

The First Part of an External Analysis Is to