Learn in the textbookFrameworks for Analyzing the Business Environment
DefinitionThe internal environment (内部環境) covers factors the company owns and can change by its own decisions, such as management resources (経営資源) like people, equipment, money and information, along with technical skill and brand.
ExplanationIn SWOT analysis (SWOT分析), the parts of the internal environment that work for the company become strengths and those that work against it become weaknesses. Whether something is a strength or a weakness is judged by comparing it with competitors to see if the company is ahead or behind.
AnalogyIt is like the tools you own and the skills you have learned: how you maintain and practice them can make them better or worse.