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Summary Internal environment

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A snapshot of the summary - Internal environment

  • 1 Influences of the external environment and the organization's culture

  • 1.0 Internal Environment

  • organization’s environments change frequently 
    In a stable environment the components in an organization’s environment change very little 
  • Describe the constraints and challenges facing managers in today’s external environment
    · The external environment includes those factors and forces outside the organization that affect its performance. 
    · The main components of the external environment are economic, demographic, political/legal, sociocultural, technological, and global. 
    · These components can constrain and challenge managers because they have an impact on jobs, environmental uncertainty, and stakeholder relationships. 
  • 3 Managing Change and Disruptive Innovation

  • Human resources variables 
    · High commitment to training and development 
    · High job security
    • Creative People 
  • Keep external controls minimal
    rules, regulations, policies, and similar organizational controls are kept to a minimum. 
  • 4 Managing Strategy

  • Why strategy management important 
    Has a positive impact on performance
    • Helps managers decide how to act in face of change and
    uncertainty
    • Helps complex and diverse organizations work together 
  • Step 3 Doing Internal analysis 

    -Resources: an organization’s assets that are used to develop, manufacture, and deliver products to its customers.
    -Capabilities: an organization’s skills and abilities in doing the work activities needed in its business.
    -Core competencies: the organization’s major value- creating capabilities that determine its competitive weapons.
    -SWOT analysis 
    -Strengths: any activities the organization does well or its unique resources 
    -Weaknesses: activities the organization does not do well or resources it needs but does not possess 
    -SWOT analysis: an analysis of the organization’s strengths, weaknesses, opportunities, and threats 
  • Step 4 formulating strategies 
    Three main types of strategies managers will formulate: 
    • Corporate 
    • Competitive
     • Functional 
  • Step 6 Evaluating result
    How effective have strategies been at helping the organization achieve its goals 
    • What adjustments are necessary? 
    - corporate 
    -competitive
    -fucntional 
  • Types of Corporate strategy: Growth strategy
    a corporate strategy that’s used when an organization wants to expand the number of markets served or products offered, either through its current business(es) or through new business(es) 
    • Concentration
    • Vertical integration
    • Horizontal integration 
    • Diversification 
  • How are corporate strategies managed?
    BCG matrix: a strategy tool that guides resource allocation decisions on the basis of market share and growth rate of SBUs 
    • Stars
    • Cash cows
    • Question marks 
    • Dogs
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