Monitoring The External Environment Of A Company 's Internal Environment

An internal analysis’ purpose is very similar to that of an external analysis. Both are essentially developed to assist an organization build a successful strategy. Where they differ is that the external analysis focuses on the influential external elements; an internal analysis focuses on the internal forces. An internal analysis can unquestionably assist an organization drive up the profits aligning with internal matters. First, it is important to recognize what an internal analysis entails. In the course of this paper we will be looking into the key components that comprise this analysis. These components are StilSim’s value-chain, resources, core competencies, stakeholders, and finally their mission and vision.

In order to gain and sustain competitive advantage an organisation must understand the environment in which it operates in order to compete.

The main purpose of this paper is through the company 's external and internal environment analysis to evaluate the company in the industry and future developments. Assess the external environment mainly through PESTLE Analysis and Porter 's 5 Forces. Strategic Recourses & Capability Analysis for internal environmental assessment is conducted. Finally, the company somehow SWOT analysis, concluded ••••

Analyze the external and internal environment for opportunities, threats, strengths, and weaknesses that impact the firm’s competitiveness.

Identify elements of the external environment and internal resources of the firm to analyze before formulating a strategy.

On the other hand, an external scan of the organization’s environment shows that the company is competitive in the market. The company is able to satisfy its customers as required. There are other competitors in the market that offer stiff competition to the organization. This is a threat to the company. The company has opportunities as well such as expanding its market to the international level. An external scan of the environment is able to provide the external opportunities and threat that the company has.

Based on this week’s reading, core capabilities or competencies are defined as the main strength of organization based on their specific knowledge sets, skills, and technical capacities that render organizations competitive advantage in the industry (Bateman and Snell, 2014). When organizations are rooted in well-established core competencies, it would be difficult for competitors to imitate their competitive advantage.

Internal environment Combined with the knowledge of its external environment, a firm analysing its internal environment, in particular its resources, capabilities and core competencies, is able to create its vision, mission and implement its strategies for obtaining a sustainable competitive advantage (Hanson et al., 2008). It is argued by Berman, Down & Hill (2002) that only the sound combination of firm’s unique tangible and intangible resources provides a basis for competitive

Information will be gathered monthly and quarterly both internally and externally to determine areas that are successful and areas that need improvement. You Inc. will continually use the methods in environmental scanning to analyze the factors that impact the company’s future success to implement necessary changes. An environmental scan usually include an internal analysis as well as an external analysis using PEST. PEST stands for political, economic, social, and technological, which are some of the areas analyzed. The SWOT analyze a company’s internal processes which stands for strengths, weakness, opportunity, threats. (QuickMBA, 2010). Environmental scanning “is a process that systematically surveys and interprets relevant data to identify external opportunities and threats. An organization gathers information about the external world, its competitors and itself” (SHRM

Is a scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). SWOT analysis means analyzing strengths,

The business environment of an organization reveals much about its competitiveness and the possible influences on the success of its strategies. The focus of this paper will be an environmental scan of the internal and external environments of two real-world firms, their competitive advantages and company strategies for creating value and sustaining competitiveness, measurement guidelines for verifying strategic effectiveness and their evaluation.

Through an internal environment analysis, companies can identify and understand their own unique resources, capabilities, and competencies that are required for their sustainable competitive advantage. Resources, capabilities, and core competencies are the foundation of competitive advantage. There is no competitive advantages are permanently sustainable in any companies, so they have to consist on their current advantages and develop new advantages by internally understanding and analyzing their resources and capabilities. Competitors have their own unique resources, capabilities, and core competencies to create values for their customers. Both tangible and intangible resources, which include individual, social and organizational phenomena, are combined to generate capabilities. In turn, company’s capabilities are used to build core competencies. Also, core competencies are as a source of competitive advantage for a company to win in the competitive market.

For example, identified threats in the business environment, such as new government regulations regarding a product design or the introduction of competing products, might alert the business owner that a proposed investment in a new manufacturing production line should be more carefully evaluated. In addition, an awareness of a company weakness such as a lack of qualified employees might suggest a need to consider outsourcing particular functions. In turn, opportunities such as the availability of low-interest loans for start-ups might encourage the entrepreneur to pursue the development of a new product to meet a rising customer demand. In contrast, identified strengths, such as extensive experience in an industry experiencing rapid international growth, might suggest the need to partner with foreign

One topic that interested FlexCon managers was a discussion of how core competencies relate to outsourcing decisions. FlexCon management commonly accepted that a core competency was something the company "was good at." This view, however, is not correct. A core competence refers to skills, processes, or resources that distinguish a company, are hard to duplicate, and make that firm unique compared to other firms. Core competencies begin to define a firm's long run, strategic ability to build a dominant set of technologies and/or skills that enable it to adapt quickly to changing market

It also aims to identify market place opportunities and threats in the external environment and to decide how to use their resources, capabilities and core competencies in the firm’s internal environment to pursue opportunities and overcome threats.