Future Business Leaders of America (FBLA) Entrepreneurship Practice Test

What should be included in the environmental and industry analysis section of a business plan?

1. Local market conditions

2. Trends at the national and international levels

3. Future company goals

4. Current employee skill sets

The correct answer is: Trends at the national and international levels

The inclusion of trends at the national and international levels in the environmental and industry analysis section of a business plan is crucial for several reasons. This section aims to give a comprehensive overview of the external factors impacting the business, which can include economic, social, political, and technological trends beyond the immediate local environment. Understanding national and international trends allows entrepreneurs to identify opportunities and threats that may not be apparent when only focusing on local conditions. For example, shifts in consumer behavior due to a global health crisis, changes in trade policies, or advancements in technology can significantly influence a company's market strategy and competitive landscape. Incorporating this broader perspective ensures that the business plan is not only relevant to current conditions but also adaptable to future changes, enhancing the company's long-term viability and strategic planning.