This step includes the specification of the external environment in which the organization operates and the definition of
the relationship between this environment and the organization itself. The external environment typically includes the local
market, the business, competitive, financial and political environment, the law and regulatory environment, social and cultural
conditions, as well as external stakeholders.
It is also very important that both the perceptions and values of the various stakeholders and any externally generated threats
and/or opportunities are properly evaluated and taken into consideration.