Internal Business Environment Analysis

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ACTIVITY 2 TRAINING SESSION 2.1 INTRODUCTION It is often said that change can be deemed inevitable in mankind's evolution. Change gradually manifest itself and takes place through different stages. Thus, it’s seldom a reality and a needed process that affects man and nature alike. It’s the process through which anything or anyone has the opportunity to be altered, improved and evolved. Per say, change is constantly assimilated to the concept of cause and effect – moreover when change happens our most instinctive reaction is to naturally adjust & adapt to its effects. On the other hand, anything that fails to change and evolve eventually becomes obsolete. Adaptability might just be man’s first and foremost survival instinct. An important trait…show more content…
As the name suggests, “internal” business environment refers to internal factors and resources that affect the running of the business. This primarily includes the workforce where the employees play a vital role in affecting company’s performance. If a company has well trained or motivated employees, that company is likely to get good output from them. However, if the same company recruits unmotivated staff who do not perform well or dig in their heels when a new plan arrived, this will affect that company’s production levels and ultimately hinder its profitability by causing a turnover. Another factor to consider is all the capabilities that a company possesses. The tool used to monitor them is the resource-based…show more content…
Then it collects valuable feedbacks from the macro-environment: A company opportunities and threats: Opportunities are favourable factors and trends in the external environment that should be optimized , built on and captured. Threats on the other hand represent the obstacles and challenges that the company should avoid, manage, minimize or react to (socio cultural burdens , political instability, government restrictions etc...) Customer analysis: Segments, motivations, satisfaction meters, unmet needs. Competitive analysis: competitors analysis and positioning, performance evaluation, their images, objectives, strategies, culture, cost structure, strengths, weaknesses. Market analysis: Overall size, projected growth, profitability, barriers of entry, cost structure, distribution channel and system, trends, key success factors, bargaining power of buyers & suppliers, threats of new entrants and
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