Business Enviornment
Strategic Management
Dr. Shyamal Gomes Chapter – 3.1
Environmental Scanning
Environment literally means the surroundings external objects, influences or overall circumstances under which someone or something exists. In Business the environment in which an organization exists could be broadly divided into two parts: A) The Internal environment (Related the factors such as its personnel, physical facilities, organization and functional means, which are generally controllable. The External environment (Related the factors such as economic, socio cultural, Government and legal, demographic, geo – physical – by and large beyond the control
B)
Internal Factors
Business
External Factors
The External environment includes all the factors outside the organization, which provide opportunities or pose threats to the organization. The internal environment refers to all the factors within an organization which imparts strengths or cause weaknesses of a strategic nature. The environment in which an organization exists can, therefore, be described in terms of the opportunities and threats operating in the external environment apart from the strength and weaknesses existing in the internal environment.
INTERNAL ENVIRONMENT: There are a number of internal factors which influence the strategy and other decisions. An outline of the important internal factors is given below:
Value system: The value system of the founders and those at the helm of affairs has important bearing on the choice of business, the mission and objectives of the organization, business policies and practices. It is a widely acknowledges fact that the extent to which the value system is shared by all in the organization is an important factor contributing to success. Mission and Objectives: The business domain of the company, priorities, direction of development, business philosophy, business policy etc. is guided by the mission and objectives of the company. Management Structure and
Dr. Shyamal Gomes Chapter – 3.1
Environmental Scanning
Environment literally means the surroundings external objects, influences or overall circumstances under which someone or something exists. In Business the environment in which an organization exists could be broadly divided into two parts: A) The Internal environment (Related the factors such as its personnel, physical facilities, organization and functional means, which are generally controllable. The External environment (Related the factors such as economic, socio cultural, Government and legal, demographic, geo – physical – by and large beyond the control
B)
Internal Factors
Business
External Factors
The External environment includes all the factors outside the organization, which provide opportunities or pose threats to the organization. The internal environment refers to all the factors within an organization which imparts strengths or cause weaknesses of a strategic nature. The environment in which an organization exists can, therefore, be described in terms of the opportunities and threats operating in the external environment apart from the strength and weaknesses existing in the internal environment.
INTERNAL ENVIRONMENT: There are a number of internal factors which influence the strategy and other decisions. An outline of the important internal factors is given below:
Value system: The value system of the founders and those at the helm of affairs has important bearing on the choice of business, the mission and objectives of the organization, business policies and practices. It is a widely acknowledges fact that the extent to which the value system is shared by all in the organization is an important factor contributing to success. Mission and Objectives: The business domain of the company, priorities, direction of development, business philosophy, business policy etc. is guided by the mission and objectives of the company. Management Structure and