Question

Car manufacturers have a large lead time on new products. If an idea for a feature on a vehicle is developed, it will likely be two years before consumers know about it and can decide if they want to buy it. Consumer trends are sometimes short lived as they are always evolving. Which external analysis element is a primary focus of car manufacturers?

a. Scanning
b. Monitoring
c. Forecasting
d. Assessing

Answer 1

d. Assessing

Explanation:

External analysis refers to monitoring the environment of the industry to be able to identify opportunites and threats and take the necessary measures. This helps you to find out about events that may affect your company and that you can't control.

Scanning refers to gathering data about events.

Monitoring refers to observing an event over a period of time.

Forecasting is predicting changes in trends.

Assessing is evaluating the environment to find trends that can have consequences on your company.

According to this, the external analysis element that is a primary focus of car manufacturers is assessing because it allows them to find out about the trends in the market and make the right decisions to take advantage of them.