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 Internal environment

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Posts : 193
Join date : 2011-01-09

PostSubject: Internal environment   Tue Mar 08, 2011 12:54 pm

Internal environment
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Forces in the external environment, such as the economy, politics, laws and regulations, and technology, can directly or indirectly affect your customer's buying activities.

Environmental scanning
To remain up-to-date on the external forces that comprise your company's marketing environment, it is important to perform the environmental scanning process. To scan your organization's environment effectively, you should observe your competitor's actions, monitor industry trends, and collect information on each of the forces in the environment. By analyzing the research material, you can identify potential threats and opportunities to your organization.

SWOT Analysis components:
A SWOT analysis is another method to evaluate your organization's environment. Your marketing decisions can be influenced by the components of the SWOT acronym: Strengths, Weaknesses, Opportunities, and Threats.
· Strengths
Your organization's strengths represent its key assets, including financial resources, core competencies, facilities and equipment, products, services, and other resource capabilities. By focusing on your company's strengths, you can build a solid foundation on which to build the organization and expand product or service development, sales, and market share.
Strengths highlight what the company does best and can be found in any level of the organization. For example, company strengths can include reliable research and development, excellent customer service, strong brand marketing, or cost advantages.
· Weaknesses
An organization's weaknesses, such as poor distribution channels or inexperienced management, are areas that hinder the company's ability to meet desired outcomes. By identifying your company's inadequacies early, you can make appropriate changes to financial resources, personnel, training, processes, products, or services, to compensate for the limitations.Since company weaknesses are internal factors, decision makers must consistently monitor employee and product performance, as well as the effectiveness of processes and training programs. Additional examples of company weaknesses include poor product design, unfocused leadership, and the inability to provide adequate support for your product or service.
· Opportunities
Opportunities for potential growth, profit, and improvement, such as a merger or limited competition, can help your organization achieve its goals and objectives. Since the external environment typically influences a company's opportunities, it is important to continually monitor your industry and competition

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