Opportunity and Threat
Opportunities
These are potential options available in the external environment that a venture / entrepreneur can exploit to achieve its vision, mission, goals and objectives.
Threats
These are the negative forces which can inhibit the venture's capability to achieve its vision, mission, goals and objectives.
Categories of External Forces
- Economics
- Social, cultural and demographic forces
- Natural Environment forces
- Political and governmental forces
- Legal forces
- Technological forces
- Competitive forces
Tools for External Audit
- Marketing Intelligence
- Scenario Planning
- PEST (Political, Economic, Social, Technological) Analysis
- Porter's five forces (Competition in the industry, new entrants, Power of Suppliers, Power of customers, Substitute products)