What are external factors in a SWOT analysis generally referred to as?

Prepare for the PGA Level 1 Business Planning Test. Use flashcards and multiple-choice questions with hints and explanations. Get ready to achieve your goals!

In a SWOT analysis, external factors are generally referred to as external threats and opportunities. This framework is used to evaluate an organization's Strengths, Weaknesses, Opportunities, and Threats.

The correct answer emphasizes the component of external threats, which are potential challenges or obstacles that arise from the environment outside of the organization. These can include competitive pressures, market changes, regulatory shifts, and other elements that might negatively impact the organization’s performance.

Understanding external threats is crucial for businesses as it allows them to be proactive in their strategic planning, adapting to changes and mitigating risks. By recognizing these threats, organizations can develop strategies to minimize their impact and position themselves for success despite external challenges.

In contrast, other answer choices pertain to internal factors or elements that are either controllable or specific market opportunities, which do not align with the definition of external threats in the context of a SWOT analysis.

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