internal and external environment Archives

13 Oct 2022

External Environment in Strategy and Corporate Development

Management, Strategyinternal and external environment, strategy

The external environment is composed by forces outside the firm and outside its control. These forces also influence the firm and can be sources of market opportunities as well as competitive advantages. At this stage it important to distinguish between industry and market: “the term industry tends to refer to a fairly broad sector, whereas a market refers to the buyers and sellers of a specific product” (Grant, 2018). Therefore, the packaging industry comprises several markets such as steel cans, aluminum cans, paper cartons, and many others. Environment analysis The profitability of the companies may largely depend on the industry…

Internal Environment in Strategy and Corporate Development

Management, Strategyinternal and external environment, management, strategy

In this chapter, we will focus on the internal environment of the company and on how this could be crucial to its success. Therefore, resources and capabilities are sources of competitive advantage. First of all, it is important to notice that there is a clear distinction between the concepts of resources and capabilities. One can think about the resources as money derived. A company might invest some money and immediately obtain a resource. Capabilities must be developed over time. Put generically: resources refer to what an organization owns, capabilities refer to what the organization can do. For instance, if money is invested in…

Fundamental Concepts of Strategy and Corporate Development

Management, Strategyinternal and external environment, management, strategy

Management is both a universal human activity and a distinct occupation. We all manage in the first sense, as we organize our lives and deal with family and other relationships. As employees and customers we experience management in the second sense, as members of an organization, or as one with which we deal (Boddy, 2020). Nowadays, data is an essential part of the management activity in order to make good decisions, supported by facts and not merely opinions. As the management thinker and influencer Peter Drucker once stated: you can only manage what you can measure. You can only manage…