discuss the components of environmental analysis and internal environment in MCS
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Environmental analysis: An environmental analysis in strategic management has vital role in businesses by indicating current and potential opportunities or threats outside the company in its external environment. The external environment includes political, environmental, technological and sociological events or trends that can affect the business directly or indirectly. An environmental analysis is usually conducted as part of an analysis of strengths, weaknesses, opportunities, and threats (SWOT) when a strategic plan is being developed. Managers practicing strategic management must conduct an environmental analysis three-monthly, semi-annually, or annually, depending on the nature of the industry. Managers who identify events or conditions in the external environments can achieve competitive advantage and decrease its risk of not being ready when faced with threats (Alok Goyal, Mridula Goyal, 2009).NOTICE BOARD
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Environmental Analysis and Internal Analysis
Strategic analysis of any Commercial enterprise has two stages that include Internal and External analysis.
Environmental analysis: An environmental analysis in strategic management has vital role in businesses by indicating current and potential opportunities or threats outside the company in its external environment. The external environment includes political, environmental, technological and sociological events or trends that can affect the business directly or indirectly. An environmental analysis is usually conducted as part of an analysis of strengths, weaknesses, opportunities, and threats (SWOT) when a strategic plan is being developed. Managers practicing strategic management must conduct an environmental analysis three-monthly, semi-annually, or annually, depending on the nature of the industry. Managers who identify events or conditions in the external environments can achieve competitive advantage and decrease its risk of not being ready when faced with threats (Alok Goyal, Mridula Goyal, 2009).
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In management studies, it has been shown that the intent of an environmental analysis is to help in strategy development by keeping decision-makers within an organization informed on the external environment.
Internal analysis: Internal analysis is the methodical evaluation of the key internal features of an organization. Internal Analysis recognises and assesses resources, capabilities, and core competencies. Internal analysis has four elements such as the organization's Current vision, Mission, Strategic objectives and Strategies. Resources are the assets that an organization has for carrying out whatever work activities and processes relative to its business definition, business mission, and goals and objectives. These resources include financial resources, Physical assets, Human resources, Intangible resources and Structural-cultural resources. Core competencies are the organization's major value-creating skills and abilities that are shared across multiple product lines or multiple businesses. This internal sharing process is what differentiates core competencies from typical capabilities. Competitive advantage is The collection of factors that sets a company apart from its competitors and gives it a unique position in the market