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The internal and external

environment of anorganization

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What is the internal and external

environment in an organisation?

There are things, situations and events

that occur from within and outside theorganization and affect the organization in

either a positive or negative way.

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The internal and external environment of

an organization

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The internal environment of an

organization

The internal environment of an

organization is the environment that has

a direct impact on the business and is

composed of the elements within the

organization.

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The internal environment of an

organization

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Elements of internal environment :

- human resources -it contributes to the strength and

weakness of any organization. The human resource in anyorganization must have characteristics like skills, quality,

high morale, commitment towards the work, attitude.

- management structure and nature - the organizationalstructure like the composition of board of directors,

influences the decisions of business as they are internal

factors.

- internal power relationships - the relationship among the

three levels of the organization. The mutual coordination

among those three is an important need for a business.

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Elements of internal environment :

- research and development - R&D department has a direct impacton the organization. This aspect mainly determine the companys

ability to innovate and compete.

- financial factors - financial policies, financial positions and capital

structure are also important because they affect business

performances, strategies and decisions.

- marketing resources

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The internal environment of an

organization

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The internal environment of an

organization

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The external environment

It refers to the environment that has

an indirect influence on the business.The factors are uncontrollable by the

business.

External Environment may posesignificant threats or possibilities for an

organization. Any organization that easily

adapts to the environment essentiallysurvives and the ones that do not are the

ones that are eliminated in the

competition.

Th l i f

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The external environment of an

organization

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The external environment of an

organization

There are two types of externalenvironment :

1. The micro environment is also known as

the task environment and operatingenvironment.

The micro environment consist of theactors in the companys immediate

environment that affect the performance of

the company. These include the suppliers,

marketing intermediaries, competitors,

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The external environment

2.The Macro Environment is also known

as general environment and remoteenvironment. Macro factors are generally

more uncontrollable than micro

environment factors.

When the macro factors become

uncontrollable , the success of companydepends upon its adaptability to the

environment.

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What is a SWOT analysis?

A SWOT analysis (alternatively SWOT

Matrix) is a structured planning method

used to evaluate theStrengths, Weaknesses, Opportunities,

and Threats involved in a project or ina business venture. A SWOT analysis involves

specifying the objective of the business venture or

project and identifying the internal and external

factors that are favorable and unfavorable toachieving that objective.

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What is a SWOT analysis?

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Thank you for yourattention !

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