What Is an Internal Environmental Analysis?

Enterprise internal environment (Enterprises interior environment) refers to the internal material and cultural environment of the enterprise, including corporate resources, corporate capabilities, corporate culture and other factors, also known as internal conditions of the enterprise. A shared value system within an organization, including the company's guiding ideology, business philosophy, and work style.

Internal environment

Enterprise internal environment (Enterprises interior environment) refers to the sum of the material and cultural environment within the enterprise, including

The internal environment of an enterprise is the internal conditions and internal conditions that are conducive to ensuring the normal operation of the enterprise and achieving corporate profit goals.

The internal strategic environment is a factor that has an important internal connection with the strategy, is the basis of the company's operations, is the starting point, basis and conditions for formulating the strategy, and is the basis for winning the competition. In <<

The internal environmental analysis of the enterprise includes many aspects, such as organizational structure, corporate culture, and resources

There are a variety of methods for analyzing the internal environment of a company, including

The analysis of the internal environment of an enterprise can be divided into internal management analysis, marketing capability analysis, and corporate financial analysis.

Corporate external environment

And other internal factors analysis.

Analysis of internal management of enterprise internal environment

It includes five functional areas of planning, organization, motivation, appointment, and control. They are interdependent and influence each other. Planning is the basis of the other four functions.

The plan is the choice and stipulation of the goal, the way to achieve the goal, and the time of the enterprise from the development process. The plan focuses on the future and is a bridge for the company to develop from the status quo to the future. How a company's planning capabilities determine to a large extent whether it can effectively implement corporate strategic management. Because planning is not only the basis for developing effective strategies, but also the foundation for successful implementation and evaluation of corporate strategies. The effectiveness of corporate planning depends on whether the planning is carried out from the top down, whether it is carried out in accordance with formal planning procedures, whether the "synergy" effect can be obtained through the planning work, and whether the environment is understood Change and react positively.

Organization is the orderly and coordinated use of the company's resources in achieving its goals. The purpose of the organization is to improve the effectiveness and efficiency of the enterprise by arranging various activities and positions of the enterprise in accordance with a reasonable structure. The effectiveness of organizational work lies in whether the enterprise reasonably allocates various activities and tasks in the plan to each position, combines the positions into several departments according to the similarity of the positions, and assigns the powers and responsibilities required to complete the task. To various positions. Only by clarifying the work tasks, work requirements and division of labor and cooperation between each post, can the implementation of corporate strategy be guaranteed and the evaluation of corporate strategy based on. The effectiveness of organizational work requires not only respecting general organizational principles, but also the relationship between division and division of labor, wide and narrow management spans, and centralization and decentralization based on the actual situation of the enterprise.

Incentives are a process that affects employees to work according to the requirements of the enterprise. The incentive function of management includes four aspects: leadership, group dynamics, information communication and organizational change. The level of leadership of an enterprise is related to whether employees are effectively motivated and the coordination of the interests of all aspects of the enterprise. The code of conduct of informal groups within the enterprise has a positive and negative effect on the implementation of corporate strategy. Enterprise managers can use and manage these groups to achieve corporate goals during the implementation of the strategy. The success of enterprise strategic management is closely related to the status of internal information communication in the enterprise. With the understanding and support of enterprise strategy by enterprise employees, strategy formulation, implementation, and evaluation can be better carried out. The corporate strategy is generated by adapting to changes. The implementation of the corporate strategy will inevitably bring huge changes to the enterprise. The attitude and adaptability of corporate employees to organizational changes may become the strength or weakness of the enterprise.

Appointment as a management function, sometimes called human resource management or personnel management, mainly involves the recruitment, appointment, training, deployment, evaluation, rewards and penalties, and other personnel management of employees. The quality of enterprise employees is often related to the success or failure of enterprise strategic management.

Control functions include activities that are designed to align the plan with actual activities. Enterprise managers can evaluate the company's activities and take necessary corrective actions to ensure the effective realization of the company's plans and objectives, and reduce the losses caused by possible deviations to the company. The effectiveness of corporate control functions is of great significance for effective strategic evaluation and control.

Marketing Capability Analysis

That is to analyze the company's marketing strengths from the two aspects of the company's market positioning and marketing mix.

company culture

And weaknesses.

Market positioning is the question of "who are our customers" that senior managers must answer before formulating a new strategy. Enterprises should determine a target market for their products and services, and define and express it in terms of products, geographic locations, customer types, and markets. The firm market positioning is clear and reasonable, which enables companies to concentrate resources to create a location advantage in the target market, thereby gaining an advantageous position in the competition. The accuracy of an enterprise's market positioning depends on its ability to conduct market research and surveys, its ability to evaluate and determine target markets, and its ability to occupy and maintain market positions.

Marketing mix refers to the combination of various marketing methods that can be used to influence market demand and gain competitive advantage. It mainly includes variables such as product, price, distribution, and promotion. Effective use of the marketing mix requires designing a marketing mix that meets the needs of the target market, and also requires timely adjustment of the marketing mix based on changes in the product life cycle.

Corporate Internal Environment Corporate Financial Analysis

The financial analysis of an enterprise can be carried out from two aspects: the level analysis of the financial management of the enterprise and the analysis of the financial status of the enterprise .

The analysis of financial management of an enterprise is to see how the financial management personnel of the enterprise manages the funds of the enterprise, whether to determine the method of fund raising and the allocation of funds according to the strategic requirements of the enterprise, monitor the operation of funds and determine the distribution of profits. There are three main types of financial decisions for an enterprise: fund-raising decisions, which determine the best fund-raising portfolio or capital structure of an enterprise. The financial manager of an enterprise should, in accordance with the requirements of the company's target strategy and policy, timely and quantitatively raise the required amount from inside and outside the enterprise to the required Investment decisions, corporate financial managers use capital budgeting techniques to allocate funds in various products, departments, and new projects based on new sales, new profits, investment payback periods, return on investment, and time to breakeven The distribution of dividends involves the proportion of dividends and profits.

An analysis of a company's financial situation is the best way to judge its strength and attractiveness to investors. The company's solvency, debt capital ratio, working capital, profit margin, asset utilization rate, cash output, stock market performance, etc. may rule out many originally feasible strategic choices, and the deterioration of the company's financial situation will also lead to the suspension of strategy implementation And changes in existing corporate strategies. A common method for analyzing the financial status of enterprises is the trend analysis of financial ratios. Financial ratios can be divided into five categories: settlement ratio, debt-to-asset ratio, activity ratio, profit ratio, and growth ratio. Of course, the financial ratio is based on the data provided by the company's accounting statements, as well as inflation, industry cycles and seasonal factors, which have certain limitations in explaining analysis capabilities, but it is still an effective tool for analyzing the strengths and weaknesses of the company. .

Analysis of other internal factors

The analysis is mainly from the aspect of corporate culture.

Corporate culture is a collection of various beliefs, expectations, and values shared by generations of members. Corporate culture provides employees with a sense of identity, motivates them to work for collective benefits, enhances the stability of the enterprise as a social system, and can serve as a guiding principle for employees to understand the framework and behavior of corporate activities. Corporate culture stipulates the behavioral norms of corporate members and has a very important impact on the implementation of corporate strategy.

The results of the analysis of internal factors of the enterprise are reflected by the strategic analysis tool of the internal factor evaluation form of the enterprise, so as to summarize and evaluate the strengths and weaknesses of the company in management, marketing, finance, production, research and development, Provide the necessary information base for developing an effective business strategy.