Which analysis helps identify political and legal factors that could impact an organization?

Study for the CBAP Strategy Analysis Test. Use flashcards and multiple choice questions, with each question offering hints and explanations. Prepare effectively for your exam!

The correct choice, which is PESTLE analysis, is specifically designed to analyze the external macro-environmental factors that can influence an organization. The acronym PESTLE stands for Political, Economic, Social, Technological, Legal, and Environmental factors. In the context of this question, the focus on political and legal factors directly relates to the first two components of the PESTLE framework.

PESTLE analysis allows organizations to systematically explore and understand how external forces, such as government regulations, political stability, and legal obligations, can affect their operations, strategy, and overall success. By identifying these factors, organizations can better anticipate potential challenges and opportunities within their business environment, enabling them to make informed strategic decisions.

While other analyses mentioned in the alternatives, such as SWOT, Porter's Five Forces, and the Balanced Scorecard, provide valuable insights into different aspects of business strategy, they do not focus on the broader macro-environmental factors like political and legal influences in the same comprehensive way.

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