External andInternal Analysis of a business definition:

The internalanalysis tries to identify the current strategy and theposition of the company against the competition. The resources andabilities of the company must be evaluated, with special attentionto the detection and elimination of weak points and enhancement ofstrong points, as well as the capacity of resistance of the companyitself, that is, its strength in the event that the strategicformulation fails.

The externalanalysis determines the strategic factors of theenvironment, in order to detect possible difficulties andopportunities for the company. This will be the specific factors ofthe study of current competitors, their market share, possiblefuture competitors, technological development, information andcommunication systems, substitute products, etc.

Pleasedescribe the tools within both the External and Internal Analysisof a business.

PESTLE Analysis

SWOT Analysis

Pleasedescribe the purpose of each

PESTLE Analysis helpsthe businesses to study the external prospects and threats in themarket of study. Those can be the political changes, economic,legal, technological, environmental, and social factors.

SWOT Analysis: withthe SWOT analysis companies can undertand their Strenghts,Weakness, Opportunities, and Threats.

The Five Forces: Focusin 5 forces that can affect the business as: competition -potential entrants, existing competitors, buyers, suppliers andalternative products/services.

• 1. How do the set ofexternal analysis tools interconnect with the set of internalanalysis tools? Please be specific.
• 2.Which comes first: external or internal analysis? Why isthis important?

please answer thequestions 1 and 2

thanks