Internal Environment

Internal environment - the
environment that includes
the elements within the
organization’s boundaries

The internal environment of a corporation consists of variables (strengths and weaknesses) that are within the organization itself and are not usually within the short-run control of top management. These variables form the context in which work is done. They include the corporation’s structure, culture, and resources. Key strengths form a set of core competencies that the corporation can use to gain competitive advantage .
Internal environment factors include the following: financial resources, technical resources, competitive situation, human resources, product line .
A major internal element for helping organizations adapt to the environment is culture. Corporate culture is an importantpart of the internal organizational environment and includes the key values,beliefs, understandings, and norms that organization members share. Organizational
activities that illustrate corporate culture include symbols, stories, heroes,slogans, and ceremonies. For the organization to be effective, corporate cultureshould be aligned with organizational strategy and the needs of the external
environment .

Sources:

⠀ Daft, R. L., Lane, P. (2010).Management(9th ed.). Cengage Learning (P. 65)

⠀ Wheelen, T. L., Hunger, J. D. (2012). Strategic management and business policy: toward global sustainability(13th ed.). New Jersey : Pearson Education, Inc. (P. 16-17)

⠀ Burnett, J. (2008). Core Concepts of Marketing. Retrieved from http://www.freeinfosociety.com/media/pdf/2936.pdf.