With context analysis you can think about the internal issues that you need to tackle to achieve the objectives. Let’s consider, as an example, that one of your management system objectives is to reduce complaints in 20% in the next 12 months. After performing a Pareto analysis you realize that more than 50% of all complaints are about dirty or open bags with product leaking. Your internal issues are about the internal strengths that you need to take advantage of, and about the internal weaknesses that need to be reduced or eliminated to achieve your objective.
External issues are about things that your organization cannot control. They bring uncertainty and may help or hinder your plans to achieve the objective.
Truth is that there is more than one way of using context analysis, this is one of the possibilities. I like this approach because it makes participants focus on things that are relevant for the organization. Doing context analysis without considering the management system objectives, normally leads to long lists of internal and external issues, without any added value.