Business Internal and External Environment Analytical Essay

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Meaning of Business Environment

The connection of internal and external constituent that factors a company`s operating situation. Business environment have two sub environment. There are internal environment and external environment.

Internal Environment

Internal environment is Includes all factors inside the organizations. Internal factors are controlled by the organizations. Internal factors with in the organizations.

Internal factors

  • Human resources – mangers, employees.
  • Current technology – apps, new software.
  • Finance – buy new machines and equipment, buy new vehicles.
  • Company image and brand equity – Apple, Nike, SONY
  • Mission and objectives – the KFC mission or vision statement is as follows. “To sell food in fast, friendly environment that appeals to price conscious, health-minded consumers” (ASK media group, 2020).

Strengths and weakness can be identified by studying internal environment.

External Environment

External environment is includes all factors outside the organizations. External factors are uncontrolled by organizations. All factors are outside. External environment has two sub environment.

Operating or competitive or task or market external environment – suppliers, customers, competitors, publics
Remote or macro or general external environment – international dimension, political-legal dimension, economic dimension.

Threat and opportunity can be identified by studying external environment.


  1. Business jargons. (n.d.). internal environment. Retrieved feabruary 16, 2020, from business jargons: https://businessjargons.com/internal-environment.html
  2. Media group. (2020, january 06). businees-finance. Retrieved feabruary 16, 2020, from reference: https://www.reference.com/business-finance/kfc-vision-statement-7285bcb4a474915f

Cite this paper

Business Internal and External Environment Analytical Essay. (2020, Nov 03). Retrieved from https://samploon.com/business-internal-and-external-environment/



What are the 5 internal environmental factors?
The 5 internal environmental factors are organizational culture, leadership style, employee attitudes and behaviors, organizational structure, and resources and capabilities. These factors play a crucial role in shaping the overall performance and success of an organization.
What are the elements of external and internal business environment?
The external business environment consists of factors that are out of the company's control, such as economic conditions, competition, and government regulations. The internal business environment includes company policies, culture, and structure.
What is external environment in business?
The external environment of a business is the industry and market in which the business competes, as well as the factors that influence the industry and market.
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