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Strategic Management (Internal Environment)

The internal environment of a company includes factors within its control such as corporate culture, management structure, and resources. Key factors are the company's value system, mission and objectives, organizational structure, human resources policies and skills, financial resources, physical assets, reputation and brand, and research and development activities. These internal factors can provide strengths and weaknesses that impact the company's performance.

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Tracy Van Tangonan
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145 views14 pages

Strategic Management (Internal Environment)

The internal environment of a company includes factors within its control such as corporate culture, management structure, and resources. Key factors are the company's value system, mission and objectives, organizational structure, human resources policies and skills, financial resources, physical assets, reputation and brand, and research and development activities. These internal factors can provide strengths and weaknesses that impact the company's performance.

Uploaded by

Tracy Van Tangonan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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STRATEGIC MANAGEMENT

(Internal Environment)
Learning Objectives
• Analyze and evaluate the
Internal environment
• Identify internal forces that
may prove beneficial or
detrimental to an
organization
• Assess challenges in the
Internal environment
Internal Environment
• Relates to all aspects
within the boundaries and
are generally within the
control of the top
management
• Direct Impact
• Controllable
• Strengths & Weaknesses
Factors affecting Internal
Business Environment
• Value System
• Corporate Culture
• Mission & Objectives
• Management Structure
• Physical, Human, and
Financial Resources
• Company image and
Brand Equity
Value System/Corp. Culture

• Value System of the


founders has important
bearing on:
1. Choice of the business
2. Mission and objectives
of the business
3. Business policies and
practices
Management Structure
Is important to avoid imbalance
Factors: between various business units
and departments
1. Organizational Structure
2. Composition of Board of Board of directors are responsible
for the governance of their
Directors companies. (e.g Corruption or
Fraud)
3. Extent of
Professionalization of Internal Power Relationship or
management Office Politics
1. Other stakeholders support to
top management
2. Relationship among BOD
members
3. Relationship between CEO
4. Relationship between BOD &
CEO
Human Resource
• The characteristics of the
human resources like skill,
quality, morale, commitment,
attitudes, etc. could
contribute to the strength and
weaknesses of the
organization.
• Involvement & initiative of
the people vary from
organization to organization
Human Resources
BEST COMPANIES TO WORK
FOR IN THE PHILIPPINES*
• HR policies
• Employee retention techniques
• Selection Criteria
• Training and Development
• Disputes
• Public Relations
• Issues: selecting right people,
offering competitive
compensation packages and
payroll taxes

*https://www.bworldonline.com/23-firms-recognized-in-best-company-to-work-for-awards/
Other Resources
Financial Resources Physical Resources
• Funding • Company’s Location
• Investment • Equipment
Opportunities • Facilities
• Sources of Income
Company Image and Brand Equity

• Reputation of the company


• Describes the manner in
which a company, its
activities, and its products or
services are perceived by
outsiders*
• Memorable, Recognizable and
reliable

*Read more: https://www.referenceforbusiness.com/small/Co-Di/Corporate-Image.html#ixzz6Y3ZSZcq9
Research & Development

ADVANTAGE DISADVANTAGE
• Competitive edge • High cost
• Enhance brand • Long time scale
reputation
• Increase profitability

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