Short Response
In strategic planning, external analysis entails identifying factors outside a business environment that influence a business (Bush, 2019). These factors include the strengths and weaknesses of a business. On the other hand, the internal analysis identifies factors within the business itself that influence its operation and performance (Bush, 2019). Internal factors include opportunities and threats that affect a business.
Organizations perform internal analysis for purposes of assessing their competitive advantage, resources, as well as competencies (Bush, 2019). The internal analysis enables an organization to identify its strengths along with weaknesses.
Additionally, an organization performs external analysis to help it to keep up with emerging trends and events that may affect its business in the industry (Bush, 2019). In many cases, organizations conduct a complete SWOT analysis to identify their internal strengths together with weaknesses.
The results an organization gets after conducting both internal and external analysis assist it in strategic planning. The knowledge an organization obtains after conducting an external analysis helps it in making strategic decisions regarding its strategic management (Bush, 2019). Besides, an internal analysis helps an organization in creating financial goals and ensuring that it achieves its strategic planning objectives.
References
Bush, T. (2019). Internal and External Analysis in Strategic Management (SWOT and PESTLE). Retrieved 2 March 2020, from https://pestleanalysis.com/internal-and-external-analysis-in-strategic-management/