INTERNAL AND EXTERNAL ANALYSIS
Internal analysis is the process of evaluating the factors within the business and the external analysis widely looks to the business environment to find out the factors that affect the business. SWOT analysis is used to find out the key elements or factors of internal and external analysis. SWOT analysis divides internal factors as strength and weakness and the external factors as opportunity and threats.
INTERNAL STRENGTH AND WEAKNESS
The elements or the factors within the company is known as Internal elements or Internal factors. These elements always can be controlled. Every business or leadership should always have to find the strength and weakness of the organization according to that the leader should derive the strategic plan. Internal elements or factors also known as micro environments.
EXTERNAL OPPORTUNITY AND THREATS
Government laws, Competition and Global Economic are involved in external elements or factors. It is a type of finding out the strategies of the competitors, to find out the positioning of the product in the market, strategies that have to be drawn to defeat the competitors, etc.. are analysis and treated in the external analysis.
It is an agreed numerical scale which can be applied to estimate a degree of situation. It helps to convert life situations into numerical values. The score from 1 to 4 is given for both strength and weakness and also for opportunities and threats. This helps to prioritize the strength and weaknesses and also opportunities and threats.