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The internal environment "consists of those relevant physical and social factors within the boundaries of the organization or specific decision unit that are taken directly into consideration in the decision-making behavior of individuals in that system". [1]
These factors can come from internal or external conditions to the organization. Internal factors to the organization can be the organizational structure, geographical distribution of resources, infrastructure, information technology software, resource availability and employee capability.
The situation analysis looks at both the macro-environmental factors that affect many firms within the environment and the micro-environmental factors that specifically affect the firm. The purpose of the situation analysis is to indicate to a company about the organizational and product position, as well as the overall survival of the business ...
Demographics—changes in the age, race, gender, culture of those in the organization serviceable area; Physical environment—growth of location in which organisation is situated, access to location; Legislation; Local, national, or international events; A number of authors advocate assessing external factors before internal factors. [5] [10] [11]
Organizational analysis focuses on the structure and design of the organization and how the organization's systems, capacity and functionality influence outputs. Additional internal and external factors are also accounted for in assessing how to improve efficiency.
A company is influenced by its environment. Many environmental factors, especially economical or social factors, play a big role in a company's decisions, because the analysis and the monitoring of those factors reveal chances and risks for the company's business. This environmental framework also gives information about location issues.
More specifically, organizational adaptation is premised on organizational decision-making that is intentional, whereby decision-makers are aware of their environment; relational, in that organizations and environments influence one another; conditioned, in that environmental characteristics evolved with other organizations’ actions; and ...
Context analysis is a method to analyze the environment in which a business operates. Environmental scanning mainly focuses on the macro environment of a business. But context analysis considers the entire environment of a business, its internal and external environment. This is an important aspect of business planning.