Internal+Environment
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THE INTERNATIONAL
ENVIRONMENT
DOMESTICMACROECONOMIC
ENVIRONMENT
SECTORALENVIRONMENT
PUBLIC RELATIONS
ENVIRONMENT
BUSINESS ENVIRONMENT
INTERNAL ENVIRONMENT
NON ECONOMIC ENVIRONMENT
INTERNAL ENVIRONMENT
CompanyImage &Brand Equity
MiscellaneousFactors
HumanResources
InternalPower
Relationship
ManagementStructure &
Nature
Mission&
Objectives
ValueSystem
INTERNALENVIRONMENT
ValueSystem
Has a bearing on
Choice of business
Mission & Objectives
Business Policies
Business Practices
Mission&
Objectives
Guides
Business domain of the company
Priorities
Direction of Development
Business philosophy
ManagementStructure &
Nature
Organization structure
Composition of Board
Professionalism of Management
Important factors influencing business decisions
InternalPower
Relationship
SUPPORT TO TOP
MANAGEMENT
RELATIONSHIP BETWEEN
BOARD MEMBERS
INFLUENCE DECISIONS
AND THEIR IMPLEMENTATION
HumanResources
Skill
Quality
Morale
Commitment
Attitude
CharacteristicsContribute to the strengths & weaknesses of an organization
CompanyImage &Brand Equity
Raising Finance
Forming joint ventures
Other alliances
Soliciting market intermediaries
Entering purchase/sale contract
Launching products
Matters when
MiscellaneousFactors
Physical assets & facilities
R & D and technological capabilities
Marketing resources
Financial factors
Contribute to business decisions
Contribute to success/failure of business
Determinants of internal environment of an organization
…….. Mission & vision of an organization ……. Management philosophy & strategy ……. Industrial relations …….. Corporate culture and values …….. Line & staff relations …….. Governance standards & codes …….. Quality control system …….. Team spirit among employees …….. Work culture & socio-economic background …….. Job design & coordination …….. Quality of internal communications …….. Compensation system & career progression of employees …….. Control system of employees
INTERNAL ENVIRONMENT
Major pollutants of internal environment
…….. Conflict between different owner groups
…….. Conflicts between workers & managers
…….. Inter-departmental conflicts and mistrust
…….. Unhealthy competition and conflict between employees
…….. Office politics & discrimination at work place
……. Absenteeism & moonlighting
…….. Corruption & money laundering
…….. Nepotism & misuse of office position
…….. Disloyalty and espionage for outsiders
…….. Sabotage
…….. Sexual harassment at workplace