Which analysis framework focuses on external factors impacting an organization?

The correct choice is PEST analysis, which is specifically designed to assess external factors that can influence an organization. PEST stands for Political, Economic, Social, and Technological factors. This framework allows organizations to understand the broader context in which they operate by evaluating how these external elements can affect their strategies and experiences.

By analyzing these dimensions, organizations can anticipate changes in the market environment, adapt to regulatory shifts, understand socio-cultural dynamics, and leverage technological advancements. This comprehensive view is crucial for strategic planning and decision-making, as it helps identify potential opportunities and threats posed by external circumstances.

In contrast, other frameworks such as SWOT analysis incorporate both internal and external factors, focusing on a broader scope that includes strengths and weaknesses alongside opportunities and threats. Force field analysis evaluates the driving and restraining forces for change within an organization, while organizational analysis delves into the internal dynamics, performance metrics, and structures of the organization itself. Thus, PEST analysis distinctly concentrates on the external landscape, setting it apart as the correct framework for the question presented.