THE INTERNATIONAL

ENVIRONMENT

DOMESTICMACROECONOMIC

ENVIRONMENT

SECTORALENVIRONMENT

PUBLIC RELATIONS

ENVIRONMENT

BUSINESS ENVIRONMENT

INTERNAL ENVIRONMENT

NON ECONOMIC ENVIRONMENT

INTERNAL ENVIRONMENT

CompanyImage &Brand Equity

MiscellaneousFactors

HumanResources

InternalPower

Relationship

ManagementStructure &

Nature

Mission&

Objectives

ValueSystem

INTERNALENVIRONMENT

ValueSystem

Has a bearing on

Choice of business

Mission & Objectives

Business Policies

Business Practices

Mission&

Objectives

Guides

Business domain of the company

Priorities

Direction of Development

Business philosophy

ManagementStructure &

Nature

Organization structure

Composition of Board

Professionalism of Management

Important factors influencing business decisions

InternalPower

Relationship

SUPPORT TO TOP

MANAGEMENT

RELATIONSHIP BETWEEN

BOARD MEMBERS

INFLUENCE DECISIONS

AND THEIR IMPLEMENTATION

HumanResources

Skill

Quality

Morale

Commitment

Attitude

CharacteristicsContribute to the strengths & weaknesses of an organization

CompanyImage &Brand Equity

Raising Finance

Forming joint ventures

Other alliances

Soliciting market intermediaries

Entering purchase/sale contract

Launching products

Matters when

MiscellaneousFactors

Physical assets & facilities

R & D and technological capabilities

Marketing resources

Financial factors

Contribute to business decisions

Contribute to success/failure of business

Determinants of internal environment of an organization

…….. Mission & vision of an organization ……. Management philosophy & strategy ……. Industrial relations …….. Corporate culture and values …….. Line & staff relations …….. Governance standards & codes …….. Quality control system …….. Team spirit among employees …….. Work culture & socio-economic background …….. Job design & coordination …….. Quality of internal communications …….. Compensation system & career progression of employees …….. Control system of employees

INTERNAL ENVIRONMENT

Major pollutants of internal environment

…….. Conflict between different owner groups

…….. Conflicts between workers & managers

…….. Inter-departmental conflicts and mistrust

…….. Unhealthy competition and conflict between employees

…….. Office politics & discrimination at work place

……. Absenteeism & moonlighting

…….. Corruption & money laundering

…….. Nepotism & misuse of office position

…….. Disloyalty and espionage for outsiders

…….. Sabotage

…….. Sexual harassment at workplace