In which category would 'competition' be classified in relation to business forecasting?

Competition is classified as an external factor in relation to business forecasting because it originates from outside the organization and significantly influences market dynamics and strategic decisions. Understanding competition involves analyzing external market conditions, including the actions of rival businesses, industry trends, and consumer behavior. These external elements shape the overall business environment and directly impact forecasting related to sales projections, market share, and strategic positioning.

In contrast, internal factors pertain to elements within the organization, such as operational efficiencies, employee performance, and internal resources. Organizational factors would focus on the structure and culture of the company, while strategic factors usually involve the long-term goals and plans of a business. Understanding competition as an external factor highlights the importance of adapting to the competitive landscape when making forecasts and strategic decisions.