AIt clarifies each team member's individual role and responsibilities
BIt maps out the key milestones on the project timeline
CIt documents the project's internal strengths and areas for improvement
DIt supports early identification of external factors that could affect project outcomes
EIt produces cost baseline estimates for procurement purposes
✓ Correct answer: D. It supports early identification of external factors that could affect project outcomesA PESTLE analysis surfaces potential external risks and enablers early in the project lifecycle, enabling better-informed planning.
Why the other options are incorrect:
• It clarifies each team member's individual role and responsibilities: Defining roles and responsibilities is part of organisational planning, not external environment scanning.
• It maps out the key milestones on the project timeline: Identifying milestones is a scheduling activity unrelated to macro-environmental analysis.
• It documents the project's internal strengths and areas for improvement: Mapping internal strengths and weaknesses is the role of a SWOT analysis, not PESTLE.
• It produces cost baseline estimates for procurement purposes: Cost baselines are developed during financial and procurement planning, not through PESTLE.
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Theory