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Jorong Lubuk Sao, located in Nagari Dalko, Agam Regency, has great potential in the plantation, fisheries, and agriculture sectors. This study systematically examines the external factors influencing economic development in Jorong Lubuk Sao through an integrated PESTEL-SWOT analytical framework. Qualitative research methods were applied through observation and interviews with local economic actors. The findings reveal that six key external dimensions – political, economic, socio-cultural, technological, ecological, and regulatory aspects – substantially influence the village's economic progression. Furthermore, the SWOT examination pinpoints internal capabilities and limitations, along with external prospects and risks, which collectively shape the community-driven tourism development initiatives. This study recommends the need to enhance community awareness, improve promotion efforts, and secure government support to achieve sustainable economic development.

The external environment consists of various factors outside the organization that influence performance and the strategic decision-making process. These factors include economic, social, political, legal, technological and competitive aspects that continue to develop. Therefore, organizations need to analyze and understand the external environment in order to recognize opportunities that can be utilized and anticipate potential threats. Through a comprehensive analysis, organizations can formulate flexible and responsive strategies so that they are able to maintain sustainability and increase competitiveness in a changing market. This study aims to first certainly explain the concept of external environmental analysis, second to explain macro environmental factors through the PESTEL approach, third to explain the analysis of the industrial environment that includes aspects of competition and market power, fourth to compile an industrial competition profile through identifying competitor and market strengths, and fifth to predict business environmental conditions that can affect organizational strategy. The method used is a literature study with a qualitative descriptive approach. The results of the discussion show that external environmental analysis makes an important contribution to the preparation of adaptive, innovative, and sustainable business strategies.