Internal v external analysis

In this lesson

1. 0:00 Environmental Issues and Strategic Analysis
2. 1:02 Internal Versus External Business Analysis
3. 2:28 External Triggers for Change
4. 3:54 Responding to External Change Factors
5. 5:04 Strategic Responses to Environmental Shifts
6. 5:29 Sector-Wide Drivers of Change

About this lesson

You'll explore what makes each analysis type distinct: internal analysis examines your organisation's strengths and weaknesses (what resources and capabilities you have), while external analysis identifies opportunities and threats in the market environment (customer preferences, competition, economic factors, regulation, and technology). Understanding both perspectives helps you build a complete strategic picture before making key business decisions. You'll discover the main external triggers for change—market shifts, technological advances, competitive moves, economic factors, and regulatory changes—and learn how to assess their impact on your organisation. The lesson guides you through critical questions to ask when responding to external change: How significant is the impact? Does it align with our strategy? Do we have the resources? What are the risks? How will stakeholders be affected? And is our culture ready? These considerations help you decide whether innovation, acquisition, diversification, or other strategic actions are needed. The lesson also examines broader external drivers that reshape entire sectors: technological convergence (like digital health solutions), regulation changes (such as GDPR), market disruption, globalisation, environmental sustainability focus, and demographic shifts. By recognising these structural forces, you'll better anticipate how your industry might evolve and position your strategy accordingly. This content is essential for E3 Strategic Management and supports your understanding of the strategic planning process you'll apply throughout your qualification.

Duration: 7m