Environment Analysis And Components Of The Business Environment
“Environment factors of constraints are largely if not totally external and beyond the control of individual industrial enterprises and their arrangements. These are essentially the ‘givers’ within which firms and their managements must operate in a specific country and they vary, often greatly from country to country.”
According to Glueck and Jauch “ The environment includes outside the firm which can lead to opportunities for or threats to the firm. Although, there are many factors, the most important of the sectors are soci–economic, technical, supplier, competitors, and government.”
These definitions clearly reveals the following important factors:
• Strategist looks on the environment changes while to analyse the threats of the business alongwith searching and offering immense opportunities to business enterprises in the market.
• A successful business enterprise has to identify, appraise and respond to the new dimensions of various opportunities and threats in its internal and external environment. • Successful business not only recognise business activities even recognise the different elements in the …show more content…
They are as listed:
• Strategy must be consistent with conditions in the competitive environment
• Strategy must place realistic requirements on the organisation/company’s internal resources and capabilities.
• Strategy must be carefully formulated, implemented, controllable and executed.
Internal analysis of the organisation is to difficult and challenging one to strategist.
An internal analysis has leads to design a realistic organisation profile. It frequently involves tradeoff, value system judgments, educated and skilled guess as well as objective and standardized analysis. A systematic internal analysis leads to main objective of the organisation profile. It is essential to develop strategy and design a realistic mission for achievement of the strategy.
Internal analysis of the organisation must identify the strategically strengths, opportunities, weakness and threats that are based on organisation strategy.
Organisational analysis identifies suitable strategy that based on the SWOT analysis.
Internal analysis can be achieved by first identifying key internal factors like value system, mission objectives, management structure and nature, integrated power relationship, human resource, company/organisation image and brand equity,