Milestone Two: Environmental and Industry Analysis Chapter 3 gives a good overview of Environmental issues, while the article located in the module reading and resources area will support your analysis. The Environmental Analysis consists of two major elements, 1) an analysis of the internal factors that effect a small business and 2) external factors that effect a small business. The internal analysis assesses the strengths and weaknesses of your company. It identifies what it is that your company can do well, as well as what it can do better. The external analysis assesses the opportunities and threats present at the time the business plan is written. Use the external analysis to identify trends and changes that are happening outside of a company's control (at the local, national, and/or international levels) which may influence the future of the business. Such external categories as economic, competitive, legal, political, cultural, and technological can all affect your business and should be included in the external analysis. Also, you will do an industry analysis that will describe the industry within which your business will operate. In your analysis, include the size of the industry (amount of revenue generated) and whether the industry is growing, stable, or declining. Also, focus on specific industry trends.