Which of the following tools is commonly used to analyze external factors affecting an organization?

PEST Analysis is a strategic tool widely used to evaluate the external factors that can influence an organization. The acronym PEST stands for Political, Economic, Social, and Technological factors, which encompass a broad spectrum of influences that exist outside the organization itself. By analyzing these external conditions, businesses can identify opportunities and threats in their environment, enabling them to adapt their strategies accordingly.

This tool is particularly effective for assessing changes in the external landscape that might impact strategic planning and decision-making. Organizations can use PEST Analysis to remain proactive rather than reactive, ensuring that they are prepared to respond to changes in regulations, economic trends, social dynamics, and technological advancements.

In contrast, while SWOT Analysis includes an assessment of external opportunities and threats, it also combines internal factors such as strengths and weaknesses. The Five Forces Model specifically analyzes industry competition and market dynamics rather than the broader external environment. The Business Model Canvas outlines the business model's fundamental aspects but is not primarily focused on external factors. Thus, the unique focus of PEST Analysis on external influences makes it the correct choice in this context.