Internal Environment

The important internal factors which have a bearing on an organisation include:

  1. Value system: The value system of the founders and those at the helm of affairs has imported bearing on the choice of business, the mission and objective of the organisation, business policies and practices.

  2. Mission and objectives: The business domain of the company, priorities, direction of development, business philosophy, business policy etc. are guided by the mission and objectives of the company e.g. Ranbaxy’s thrust in to the foreign markets and development have been driven by its mission “to become a research based international pharmaceutical company.”

  3. Management Structure and Nature: The organisation structures the composition of the Board of Directors, experts of professionalisation of management etc. are important factors influencing business decisions. Some management structures and styles delay decision while some others facilitate quick decisions making.

  4. Internal Power Relationship: Factors like the amount of support the top management enjoys from different levels of employees, shareholders and board of directors have important influence on the decisions and their implementation.

  5. Human Resources: The characteristics of the human resources like skill, quality, morale, commitment, attitude etc. could contribute to the strength and weakness of an organisation.

  6. Company Image and Brand Equity: The image of the company matters while raising finance, forming, joint venture or other alliances, soliciting marketing intermediaries, entering purchase or sale contracts, launching new products etc.