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13. Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n) _______ analysis.

a. Business
b. Industry
c. Competitor
d. Strategic
e. Market

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Answer: Strategic Analysis.

Explanation: Strategic analysis is the process that firms use to study and understand the many different aspects of their competitive environment. This analysis involves the process that focus on researching an organization’s business environment within which it operates. It is an essential tool in formulating strategic planning for decision making and smooth working of the business organization.

Strategic analysis refers to the process of conducting research on a company and its operating environment within which its operates to formulate a strategy. Strategic analysis helps define a strategy that will help stand out from the competitors and to also remain competitive. Another important function of strategic analysis is the prediction of future events and the planning of an alternative approach if the first fail to deliver.

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