Difference Between Internal And External Environment

946 Words4 Pages
An External environment refers to the environment in which it is not directly related to an organization. External environment is a set of elements that directly affect every single organization of a particular region or marketplace. External environmental factors are also called macro environmental factors. An organization has very little to do with external environment or external environmental factors. External environment include the following factors-

• Legal environment
• Demographic environment
• Economic environment
• Cultural environment
• Technological environment.
• Social environment
• Political environment

External environment needs to be carefully analysed by an organization in order to operate business effectively (Huber, F., 2001).

2.3: an explanation of how internal and external analyses are integrated.
In consideration of both Internal & external environments of an organization it is needed to properly aligned & integrated in order to understand the marketplace properly.The Internal & external environments are analysed to integrate properly in order to reach an effective strategy to set company goals & objectives.

For analysing the effectiveness of a company, SWOT analysis is a very effective tool in both internal & external environments& integrating them properly.
SWOT means :
• Strengths,
• Weakness,
• Opportunities.
• Threats.
SWOT analysis is very useful tool in integrating internal environment with external environment. Strengths & weakness look
Open Document