What strategic tool might be used to assess a company's external environment?

PEST analysis is a strategic tool specifically designed to assess a company's external environment by evaluating Political, Economic, Social, and Technological factors that can impact the organization. This analytical framework helps businesses understand how various external forces influence their operations, strategic decisions, and market positioning.

By conducting a PEST analysis, companies can identify opportunities and threats in the external environment, which is essential for strategic planning. For instance, understanding political regulations can help a business navigate compliance issues, while economic trends can inform pricing strategies or expansion plans. Social factors, such as changing consumer preferences, and technological advancements can also significantly influence business strategy.

The other options, while relevant to various aspects of business analysis, do not focus specifically on the external environment in the same comprehensive way that PEST analysis does. For example, operational roadmaps are used for internal planning, market analysis reports typically focus on specific markets or competitors without necessarily encompassing the broader external environment, and financial forecasts are rooted in predicting internal financial metrics rather than external factors.