Final answer:
An external threat to an institution like a university could be competition from other universities, which poses challenges in attracting students and securing funds. The structural efficiency of the institution's management is also a pertinent issue that can be influenced by external economic factors.
Step-by-step explanation:
An external threat could be competition from other universities. When addressing external threats in a business context, we consider factors such as competition, market failure, externalities, and the inability of resources to move. In the case of universities, competition could lead to a decreased number of applicants or reduced funding if students opt to attend other institutions. This represents a direct threat from other entities in the same market aiming to attract the same pool of students. Increased competition among universities may also contribute to the rising tuition rates, potentially leading to higher student loan debt that students fear they won't be able to repay. Moreover, the claim that increased financial resources have not substantially improved student performance raises concerns about the overall structure and management of educational institutions and the efficiency of resource allocation, which can be a systemic external issue.