Question : Which of the following is an external factor that influences the planning process?
Option 1: Organizational culture
Option 2: Available resources
Option 3: Market trends
Option 4: Employee skills
Correct Answer: Market trends
Solution : The correct answer is (c) Market trends.
Market trends refer to the patterns, shifts, and changes in the market conditions, consumer behavior, industry dynamics, and competitive landscape. These external factors can have a significant impact on the planning process of an organization. Market trends influence the identification of opportunities and threats, the setting of goals and objectives, and the formulation of strategies to capitalize on market opportunities or mitigate potential risks. Adapting to or anticipating market trends is crucial for effective planning and maintaining a competitive advantage.
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