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The Internal & External Organizational Environment

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What are the primary internal organizational considerations for the development of a strategic plan? What are the primary external organizational considerations for the development of a strategic plan? Which consideration is the most important? Why?

What are the key planning factors for competitive success? Provide an example of an organization that has achieved competitive success through planning. Provide an example of an organization that has failed to achieve competitive success as the result of failed planning.

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Solution Summary

This research analyzes the elements of what constitutes both the internal and external environment(s) of
an organization. The variables within the internal organization are most important in the sense that without
these, there can be no development of a strategic plan which will deal with the external environmental
variables; in essence, strategic planning involves setting both short-term and longer term objectives; objectives
reached involves the pragmatic planning toward the achievement of certain specific ends or targets. The strategy is the means and the objective is the end(s).

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According to Future Seekers (2010) the organizational environment refers to the forces that can make an impact. The forces, according to this site, make up a system of opportunities and threats. It is important to realize, according to these authors that organizations do not exist in isolation but works with the overall environment. According to this site, scholars have divided three environmental factors into the internal and the external environment(s).

According to Future Seekers (2010) the internal environment refers to the elements within the organization. As these authors point out, internally, an organization can be viewed as a resource conversion that takes inputs (labour, money, materials and equipment) from the external environment (e.g., the outside world) and converts them into useful products, goods and services, and makes them available to customers as outputs: Internal environment consists of:
1. Current employees
2. Management
3. Trade Unions
4. Shareholders.

According to Future Seekers (2010) the external environment consists of all the outside institutions and forces that have ...

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