BEntSim: INTERNAL AND EXTERNAL
ENVIRONMENTAL SCANNING
INTERNAL ANALYSIS OF THE ENVIRONMENT
 is the first step of environment scanning. Organizations
should observe the internal organizational environment.
HOW DO BUSINESSES CONDUCT INTERNAL
SCANNING? WHAT DOES IT INCLUDE?
1. Employee Interaction
2. Setting Objectives
3. Identifying Strengths And Weaknesses
What can be used to assess the internal environment?
1. Interviews,
2. surveys,
3. discussions or evaluation
Why is SWOT analysis important?
SWOT (strengths, weaknesses, opportunities, and threats) is a
widely used strategic planning tool that organisations use to
perform a comprehensive and competitive analysis of various
internal and external factors. The result of SWOT analysis helps
the organisation. to make effective planning for the future.
SWOT (strengths, weaknesses, opportunities, and threats) is a
widely used strategic planning tool that performs a comprehensive
and competitive analysis of the above four factors of any given
organization.
Strengths and weaknesses are internal variables of an
organisation, while opportunities and threats are two external
variables. The value of the SWOT analysis often depends on the
objectives of those, who carry out the SWOT test. If they can
provide objective, relevant analysis information, the results are
extremely useful for the company.
EXTERNAL ENVIRONMENT ANALYSIS SCANNING
1. Examining the industry environment of the organization
2. Consists of all those forces of external that affect the
working of a business.
3. Refers to the conditions, forces, events and situations
within which business enterprises have to operate.
4. Closely related to SWOT Analysis
Industry
 is a group of companies offering products or services
that are close substitutes for each other. Examples of an
industry include soft drinks, mobile phones, and
sportswear.
Market Segment
 are distinct groups of customers within a market that can
be differentiated from each other based on individual
attributes and specific demands. Market segments can be
separated by characteristics such as geography,
demography, and behavior.
Will companies survive if the marketing strategy is dependent
upon targeting an entire mass market?
Scenario
 Farmer Joseph realize that not everyone would purchase
his healthy organic produce. He does not want to
advertise to the masses because he does not want his
financial budget to be affected. What will he do instead?
Supply Chain
 It is the system involved in converting a product or
service from raw materials into finished goods and then
transporting finished goods from the supplier to the
consumer.
Why do businesses need to conduct a thorough external
analysis and analyze its supply chain?
• In order to meet the customers at a least cost
• To quickly distribute products/increasing the speed of
getting a product from production to market.
• Boosts customer service
• Improves financial positions
PESTEL Analysis
 To round off external analysis, a company must conduct
an examination of the Political, Economic, Social, and
Technological landscape of the industry.
Importance of PESTEL Analysis:
• It helps you determine the steps you should take in
starting up a business and the bases of your SWOT
Analysis
• It helps you to provide what your customers needs and
wants leaning towards being a business solution oriented
for their customers.

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