Various Factors of the External and Internal to Organization

Change happens in a business environment for a variety of reasons. Those reasons depend on both internal and external factors.

These factors create certain expectations and requirements for organizations, which in turns determine the organization's direction and strategy. Whereas internal environment is made-up of several internal subsystems. Internal subsystems work together systematically and drive the organization in the direction which is in conformity to external environment demands; thereby making the organization effective and a good fit with external environment. (McShane & Steen, 2012, p.6)

External environmental factors are the macro environment affecting a business; they are factors outside the company and which they have no control over (Kotler & Armstrong, n.d.) these external factors bring about impacts to the company thus a company should always be prepared to react.

The CEO of this company began to take steps into making the company better. Both external and internal driving forces drove this change. The definition of these two terms needs to be looked at in order to understand what they were. External factors are the factors that occur outside the scope of the company or organization, for example, the economy. These factors are outside the influence of the company (Lindbald, 2014). On the other hand, internal factors are factors that occur within the scope of the organization and are within the control of the company.

* Factors of internal environment include risk management philosophy, risk appetite, board of directors, etc.

The environment of any organization consists of internal and external factors. An organization should conduct a scan of its environment in order for it to determine development, and a forecast on the factors that may influence the success of the organization. Scanning the environment refers to the possession and utilization of the information that an organization has about trends, patterns, occasion and the external and internal relationship that are within an organization. A scan of the environment may assist the management team of an organization in making a decision about the future path of the

Internal factors are those that can be addressed within the organization. This would include conditions that might be addressed by operating procedures and/or management decisions. Management teams will be most effective in working in this area: perfect example is Southwest’s Tuesday meetings. External factors are those over which you have little influence, or are not in a position to change, but which have a direct influence on the success of your business: in this case, Continental Lite and Shuttle By United.

Change is inevitable. Changing is not always welcomed but it is necessary for organizations to maintain their place in the world. Successful organizations thrive because they have a vision, a mission

To stay tuned to the recent situation in order not to miss perspective opportunities, an organization should go on with continuous scanning of its environment. According to Jobber, environmental scanning is “the process of monitoring and analyzing the marketing environment of a company” (Jobber, 2010, p.93). Aguilar states (Aguilar, 1967, cited in Costa, 1995, pp.4-5) that environmental scanning serves the purpose of gathering information about the facts and events happening around the company in order to let the management lead the organization in the right direction. Most of the authors agree on the same main function of environmental scanning.

These factors influence the internal environment of an organisation and they help in identifying the past and the present of the company, It also provides a frame work for reviewing strategy position and direction of the company.

Internal environment are SW which stands for strength and weakness, actually analysis of internal organization and external environment OT stands f opportunities and threats

It is defined as all the forces or conditions that are available within an environment that affects an organization and business. It is also known as controllable factors because business can control them. The internal environment deals with the management of resources like human resources, physical resources, technology, monetary resources and others that constitute the organization in order to implement or execute a strategy. Internal environment also includes culture and other intangible aspects like teamwork, coordination, efficiency level of employees, employee’s salaries and monitoring costs. The strategy for competition should also be in sync with the internal resources especially the internal environment.

The purpose of this paper is to analyze the culture, the internal, and the external factors in an organization. Our job is to examine the entirety of the organization. That would include the structural and environmental elements that effect the operation of the business. We will also take an in depth look at the perspectives of employees, managers, owners, and clientele.

Internal Environment is the review that looks at the company operations, internal guidance as well as mission. Internal environment does consist of the value – chain analysis as well as the research based view tool.

The internal environment consists of the inherent competencies of the firm and the structure of its internal systems and processes. It is imperative for the organization to conduct an internal analysis