External and Internal Analysis: PEST and SWOT Analysis for Business Growth

-External Analysis: To detect Opportunities and Threats - Internal Analysis: To discover Strengths and weaknesses.

PEST Analysis

Strategic business tool used by organizations to discover, evaluate, organize, and track macro-economic factors which can impact their business now and in the future. The framework examines opportunities and threats due to:

• Political
• Economic
• Social
• Technological forces

SWOT Analysis

Understanding TODAY TO BUILD A BETTER TOMORROW! It should be placed at the beginning of a project to begin the process of decision-making. SWOT analysis is the first stage in the planning process for a business venture or to measure almost anything that is influenced by internal and external factors.

• Strengths - Internal Factor +, favorable when company compared with competitors.
• Weaknesses - Internal Factor –, UNFAVORABLE when compared with the competitors.
• Opportunities - External Factor +, FAVORABLE conditions for a business
• Threats - External Factor - Cause problems for the business

SWOT Analysis and Market Position

• Growth Strategies (Using strengths to take advantage of opportunities)
• Defusing Strategies (Using strengths to deal with threats)
• Re-orientation Strategies (Taking the opportunities to work on weaknesses)
• Defensive Strategies (Dealing with threats and with weaknesses, at the same time)

The Ansoff Matrix

Tool to help companies plan their growth strategies.

• Market Penetration (Existing Market, Existing Product)
• Market Development (New Market, Existing Product)
• Product Development (Existing Market, New Product)
• Diversification (New Market, New Product)