Question

Gerald is planning on setting up a burger joint in his hometown. He finds out the NAICS (North American Industry Classification System) code for his business. From this information, he is able to understand that his immediate area contains virtually no competitors and has the potential to do very well. In the context of the critical steps involved in conducting an external analysis, Gerald is _____.

Answer 1

Answer:

defining the industry in which he is competing.

Explanation:

Gerald is planning on setting up a burger joint in his hometown. He finds out the NAICS (North American Industry Classification System) code for his business. From this information, he is able to understand that his immediate area contains virtually no competitors and has the potential to do very well. In the context of the critical steps involved in conducting an external analysis, Gerald is defining the industry in which he is competing.  

External analysis is important in the study of the business world of an enterprise in order to identify threats and opportunities to the sustainability of the enterprise. In external analysis, it is important to define the industry in which you are competing, this involves identifying your potential customers, competitors and threats to the success of your business.