What are the fundamental differences in examining internal and external environments when conducting a situation analysis?

Question

What will be an ideal response?

Answer 1

SWOT analysis, also called a situation analysis, looks at internal strengths and weaknesses and external opportunities and threats. The internal environment looks at organizational strengths—the skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission, and organizational weaknesses—the drawbacks that hinder an organization in executing strategies in pursuit of its mission—are also part of the internal environment.

The external environment includes organizational opportunities—environmental factors that the organization may exploit for competitive advantage. It also includes organizational threats—environmental factors that hinder an organization's achieving a competitive advantage.