What analysis can you do to identify external factors affecting your industry?

PEST Analysis is the correct answer because it specifically examines external macro-environmental factors that can impact an industry. PEST stands for Political, Economic, Social, and Technological factors. These are all outside an organization's direct control but significantly influence its operations and strategy. VRIO Analysis (Value, Rarity, Imitability, Organization) is incorrect because it's an internal analysis tool used to evaluate a firm's resources and capabilities for sustainable competitive advantage. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) is also incorrect as it analyzes both internal (Strengths, Weaknesses) and external (Opportunities, Threats) factors, but PEST provides a more granular and dedicated focus on the external macro-environment.