The difference between external analysis and internal analysis is the area of focus. The external analysis focuses on how external factors and industry trends a business and its success. The internal analysis focuses on the internal processes of a business, company culture, and employee onboarding, and how those factors affect the success of the business.

The elements of the External analysis are:

Supply Chain: is a component of external analysis, source of raw materials, manufacturing process, and transportation of the finished products to retail locations.

Industry: business's industry, or more specifically it's market.

Economic trends: potential changes in economic trends such as interest rates, inflation, trading laws, and recession levels.

Competitors: component to consider in a business's external analysis.

Market demographics: determine if their current products and marketing tactics meet the needs of their target audience.

PEST analysis: A way to evaluate all of the external factors that could influence a business.

The internal analysis examines your company's internal processes, resources, assets, and processes. These analyses help members of upper management identify areas of growth to make decisions. Internal analysis helps decision-makers with business strategies and plans. Working with other professionals to combine the company's business plan with your internal analysis view of the company's functions. Internal analysis chooses a framework. Every framework includes its tools, strategies, and objectives to analyze internal processes. Some analysis frameworks:

Gap analysis: Gap analysis identifies your company's current performance with its desired performance.

Strategy analysis: Strategy analysis occurs when you perform internal assessments at regular intervals.

SWOT analysis: SWOT analysis refers to existing strengths, weaknesses, opportunities, and threats.

VRIO analysis: VRIO refers to valuable, rare, inimitable, le, and organized.

OCAT analysis: OCAT analysis refers to the Organizational Capacity Assessment Tool.

Core competencies analysis: Core competencies analysis identifies which capabilities are most valuable to the company.

Strategic analysis refers to the process of researching a company and its operating environment to formulate a strategy.

Vision - What it wants to achieve in the future hopefully in(5-10 years)

Mission Statement - What a business company is in and how it rallies people

Values - Thebeliefs of an organization its commitments and ethics

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