Title: Internal vs external environment - definitions, meanings, differences | Termscompared
Headings: Internal vs external environment
Internal vs external environment
Definitions and meanings
Internal environment
External environment
Difference between internal and external environment
1. Meaning
2. Control
3. Offers
4. Effect of changes
5. Impact on the organization
6. Includes
Internal vs external environment – tabular comparison
Conclusion – internal vs external environment

Content: Includes
The internal environment consists of different resources, including human, technological, physical and financial. On the other hand, the external environment includes the micro environment and the macro environment, which consists of the economic environment and the non-economic environment, i.e. political, legal, socio-cultural, demographic and the global environment. Internal vs external environment – tabular comparison
A comparison of internal and external environment in tabular for is given below: Internal environment
vs
External environment
Meaning
All those factors that are present within the organization and have a direct impact on its operations
All those factors that are present outside the organization and which do not directly influence its operations
Control
Internal factors can be controlled by the organization
External factors cannot be controlled by the organization
Offers
Strengths and weaknesses
Opportunities and threats
Effect of changes
Specific to the organization
Industry-specific
Impact on the organization
Affects the operations, decisions and objectives of the organization
Affects growth, survival and profitability of the organization
Includes
Physical, financial, human and technological resources
Micro and macro environment
Conclusion – internal vs external environment
As explained in this article, the main difference between internal and external environment is that the internal environment includes factors that have a direct influence on the organization, while the external environmental factors do not affect the organization directly. In addition, the effect of internal factors is specific to the organization, whereas external factors influence an entire industry and not a specific organization. It is important for businesses to obtain a thorough understanding of the business environment of which they are a part so that they can survive and sustain a consistent growth in the long term. Comprehending internal and external environmental factors allows companies to align their internal environment with the external environment so as to achieve maximum benefits from the opportunities present in the environment, while avoiding the threats.