Business Strategy Internal and External Environment

Business Strategy

Due Date: 22nd August 2008

Coursework 2

  1. How far and in what ways are the two managers influenced by:

    The internal environment of the organisation; and

    The external environment?

The two managers in the case study are influenced by both the internal and external environment.

The internal environment:
Internal factors

    • Management
    • Manpower
    • machine
    • material and
    • money.

Both managers, Alex and Rose are influenced by both the internal environment. Every business is influenced by its own internal environment. Both managers have to ensure that they are managing the department properly and correctly. If employees are not satisfied with their job, they will not work to their full potential will be result in de-motivated employees. Managers have to ensure that they operate a reward scheme for its employees.

The two analysis are used to look at internal factors affecting an organization, such as the two organizations in the case study:
    • Resources: Profitability, sales, product quality, brand associations, cost of new product, employee capability, product portfolio analysis
    • Capabilities:
      Goal: To identify internal strategic strengths, weaknesses, problems, constraints and uncertainties

The internal environment includes employees, management, reward system, human resource department. Some of these elements may affect the organisation as a whole, but some affect the manager only. A manager's philosophical or leadership style directly impacts employees. Managers give explicit instructions to employees, while progressive managers empower employees to make many of their own decisions. Changes in philosophy and/or leadership style are under the control of the manager. The following sections describe some of the elements that make up the internal environment.
The staff are a vital part of an organisation. The staff at Alex’s restaurant are important because in a...