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Environmental Scanning Internal Analysis

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Rich Comandao
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404 views21 pages

Environmental Scanning Internal Analysis

Uploaded by

Rich Comandao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ENVIRONMENT

AL SCANNING
INTERNAL
ANALYSIS
OBJECTIVES:
1. Identify the forces of internal environment
2. Determine the importance of internal environment
3. Identify internal environmental scanning tools
WHAT IS INTERNAL
ENVIRONMENT?
 Also known as micro-environment
 Refers to the environment within the business.
 There are also forces of internal environment such as business resources, business culture, and
business structure.
1. BUSINESS RESOURCES
 Are assets or properties owned by the business resources.
 Resources can either be tangible or intangible.
WHAT ARE TANGIBLE
RESOURCES?
 Assets of the business that have physical appearance and form.
 Paper bills, equipment, machinery, office supplies etc.
 Classified as current resources and noncurrent or fixed resources.
WHAT ARE INTANGIBLE
RESOURCES?
 Assets that do not have physical appearance.
 copyright, patents, formula, computer software, reputation and goodwill.
TAKE NOTE
 A business without resources cannot exist and business with insufficient resources cannot
sustain the operation
2. BUSINESS CULTURE
 Collection of values, beliefs, principles, and expectations learned and shared by the
employees, founders, stakeholders, and members of the management.
 There are two types of cultures in the internal environment of a business. Culture of the
business or organization and individual culture of the employees.
TAKE NOTE:
 If the business culture is not properly managed, the operating performance of the business will
be affected.
3. BUSINESS STRUCTURE
 Formal organizational arrangement of the business in terms of hierarchy of positions, flow of
communication, relationship of functional areas and production and marketing process.
TAKE NOTE:
 The type of leadership is a dominant variable in the design of the business structure.
SCANNING OF THE INTERNAL
ENVIRONMENT
THERE ARE TWO TOOLS MAY BE APPLIED
TO SCAN INTERNAL ENVIRONMENT

 1. SWOT analysis
 2. BCG analysis
SWOT ANALYSIS
 Sometimes called TOWS analysis
 Stands for strength, weaknesses, opportunities and threats
2. BCG ANALYSIS MATRIX
 Boston Consulting Group
 Appropriate when there are several products or services that are produced or rendered by the
business.
 The products or services are then classified as stars, question, marks, cash cows and dogs
BCG ANALYSIS MATRIX
STARS
 Products or services that have high market share but low market growth
CASH COWS
 Products or services that have high market share and high market growth.
QUESTION MARKS
 Products or services that are usually facing problems.
DOGS
 Products or services that have low market share and provide poor cash.

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