Internal and External Analysis

Question 1

why internal and external analysis is performed?

Answer 1

• formulating strategy
• deciding how the organization should respond to changes in environment
• analyzing one or more strategic proposals

Question 2

what are the main tools of internal and external analysis?

Answer 2

SWOT, PESTEL, Porter’s Five forces and, life cycle analysis
Note: usually these techniques are performed in conjunction with one another in order to develop a well-rounded understanding of the situation

Question 3

what strengths and opportunities communicate to managers?

Answer 3

the best prospect for growth is coming from strengths and opportunities
Note: weakness and threats are the area that an enterprise should avoid

Question 4

how strengths and threats are communicating?

Answer 4

the best decision might be to defend the organization’s position.

Question 5

how weakness and opportunities communicate with management decisions?

Answer 5

if you are not good at doing something but there is an opportunity then the organization might benefit by investing funds to develop new resources or capabilities.

Question 6

How PESTEL can help SWOT?

Answer 6

provides some insight into the factors that could result in opportunities or threats to a business

Question 7

how porter’s five forces help SWOT?

Answer 7

gives a framework to take advantage of a strength or improve a weakness.