Page 88 - Stakis Consolidated Teaching Note

The Internal Environment:

Financial Resources: Bank balance & assets, borrowing capacity,
ability to generate internal funds.

Organisational Structure, systems & procedures for planning,
Resources: organising, controlling, coordinating.

Physical Resources: Location & sophistication of equipment/plant.

Technological Applied technology, patents, copyrights, trade
resources: secrets.

Human Resources: Knowledge, trustworthiness, managerial
capabilities.

Innovation: Scientific & research capabilities, capacity for
ideas & innovation.

Reputation: Brand names, clients’ perceptions, reputation
with suppliers.

The internal environment can be examined to ascertain a

company’s strengths & weaknesses or adapted in order
to meet a company’s strategic objectives. Generally, the

internal environment can be controlled by the

organisation whereas the external market cannot,

although depending upon the size and importance of the
company some degree of influence may be possible. The

external environment can be used to evaluate the main

opportunities and threats to business. Combining
analyses of internal & external environments i.e.

Strengths, Weaknesses, Opportunities & Threats (SWOT)

a company can assess the market place and modify or

create strategies to either maximise its potential
hopefully increasing turnover & market share or, if the