Understanding what's going on inside and outside a business is really important for making good plans. It helps a company deal with challenges and use its resources wisely.
Internal Factors are things like company culture, how skilled the employees are, and money available to spend. For example, if a business has a talented team, it can work on new and creative ideas. On the other hand, if a company is having money problems, it might need to save more. Looking at these factors helps businesses use their strengths and fix their weaknesses.
External Factors are things like market trends, rules, and the economy. A common way to look at these is through something called PESTLE analysis. This stands for Political, Economic, Social, Technological, Legal, and Environmental factors. For instance, if people start to care more about being green and protecting the planet, a company might adopt more eco-friendly practices to stand out in the market.
By looking closely at both internal and external factors, businesses can come up with strong goals. For example, if a SWOT analysis shows that a business has great product quality but is worried about more competition, it might decide to focus on marketing to make more people aware of its brand.
In simple terms, knowing both the inside and outside of a business helps it make smart choices, prepare for problems, and grab opportunities. This knowledge is key for making good plans and growing in a sustainable way.
Understanding what's going on inside and outside a business is really important for making good plans. It helps a company deal with challenges and use its resources wisely.
Internal Factors are things like company culture, how skilled the employees are, and money available to spend. For example, if a business has a talented team, it can work on new and creative ideas. On the other hand, if a company is having money problems, it might need to save more. Looking at these factors helps businesses use their strengths and fix their weaknesses.
External Factors are things like market trends, rules, and the economy. A common way to look at these is through something called PESTLE analysis. This stands for Political, Economic, Social, Technological, Legal, and Environmental factors. For instance, if people start to care more about being green and protecting the planet, a company might adopt more eco-friendly practices to stand out in the market.
By looking closely at both internal and external factors, businesses can come up with strong goals. For example, if a SWOT analysis shows that a business has great product quality but is worried about more competition, it might decide to focus on marketing to make more people aware of its brand.
In simple terms, knowing both the inside and outside of a business helps it make smart choices, prepare for problems, and grab opportunities. This knowledge is key for making good plans and growing in a sustainable way.