LET'S TALK ABOUT

INTERNAL
ENVIRONMENT
GROUP 3
INTERNAL
ENVIRONMENT
Consists of members of the firm,
investors in the firm, and the assets
the firm has. It includes the
environment, culture, tools and
equipment, people and people's
behaviours, work and work
processes, and management and
management techniques.
INTERNAL ENVIRONMENT
INFLUENCING FACTORS
A. CHIEF EXECUTIVE

A chief executive officer (CEO) is the highest-

ranking executive in a company.

Core responsibilities include setting and

executing the organization’s strategy, allocating
capital, and building and overseeing the
executive team.

Across many companies, CEOs are elected by

the board of directors.
 The CEO is elected by the board and its
shareholders. They report to the chair and the
board, appointed by shareholders.
While every company differs, CEOs are often
responsible for expanding the company, driving
profitability, and in the case of public companies,
improving share prices. CEOs manage the overall
operations of a company.
CEO ROLES AND RESPONSIBILITY CEO MAY BE EXPECTED TO
TAKE ON THE FOLLOWING
TASKS:
RESPONSIBILITIES OF THE CEO
•Oversee the strategic direction of an
organization
A Chief Executive Officer's roles and •Setting Vision, Values, and Corporate
responsibilities will vastly vary Culture
between companies, industries, and •Communicating Effectively with All
organization sizes. In general,
Stakeholders
•Maintain accountability with the board
•Monitor company performance
•Engage in media obligations and
public relations
B. BOARD OF
HOW BOARD DIRECTORS WORK
DIRECTORS
A board establishes broad rules and •Protecting shareholder interests
makes critical decisions as a •Risk management
fiduciary on behalf of the firm and its •Engaging stakeholders
shareholders. A board's
responsibilities include mergers and
acquisitions, dividends and large
investments, as well as the hiring and
firing of senior executives and their
salaries.
WHAT A BOARD OF DIRECTORS
DOES?

• Responsible for overseeing and advising a company so that it

functions as effectively as possible.

• Ensures that an organization operates lawfully and in the interests of

the company's shareholders and other stakeholders (such as its
employees).

• It operates independently of company management and day-to-day

operations.
A BOARD OF DIRECTORS CONSIDERS IMPORTANT ISSUES RELATING TO THE
COMPANY, ITS SHAREHOLDERS, ITS EMPLOYEES, AND THE PUBLIC. IT'S INVOLVED
IN:

·Helping a company to define objectives, ·Establishing an overarching yet

establish major goals, and stay focused flexible company policy for employees
on its direction over time ·Advising executives in their planning
·The hiring and dismissal of senior and decision-making
executives and upper management ·Overseeing budgets and ensuring
·Determining executive compensation proper funding when important
·Defining a process and schedule for its resources are required
interactions with the company's CEO
A BOARD OF DIRECTORS CONSIDERS IMPORTANT ISSUES RELATING TO THE
COMPANY, ITS SHAREHOLDERS, ITS EMPLOYEES, AND THE PUBLIC. IT'S INVOLVED IN:

·Monitoring, and making necessary ·Directing mergers, acquisitions,

changes to, financial and accounting and the divesting of assets
activities to safeguard corporate ·Leading crises management efforts
finances and assets
·Building and maintaining a strong,
·Establishing a company's dividend
lasting, and positive brand identity
policies
for the company and the public
·Declaring dividends and payouts
·Instituting policies for stock options
HOW BOARD OF DIRECTORSHIPS CHOOSEN

•ELECTION
Board candidates can be nominated by the
board's nomination committee, or by
investors seeking to change a board's
membership and policies.

•DISMISSAL
Directors may be removed in elections or
otherwise in instances of fiduciary duty
violations.
TYPES OF BOARD:

•Executive Board -The role of this board is

to take on the role of a chief executive
officer

•Governing Board- This board's purpose is

to offer a company owner specific guidance
related to the company's business mandate
so that it can operate effectively and
achieve its future goals.
TYPES OF BOARD:

Advisory Board- this board brings insight

to a company's top executive.

Fundraising Board- This board is focused

on attracting funds that can help an
organization meet its goals.
TYPES OF BOARD MEMBERS:

•INSIDE DIRECTOR- is most commonly defined as a

company employee, though the category sometimes also
covers significant shareholders.

•OUTSIDE DIRECTOR- directors are only involved with the

company through their board membership.
WHAT MAKES A SUCCESSFUL BOARD OF DIRECTORS?

How effective a board of directors is

ultimately depends on the quality and
conduct of its members, and their ability to
properly oversee and guide a company so that
it can achieve its goals of building
profitability and shareholder value.
WHAT MAKES A SUCCESSFUL BOARD OF
DIRECTORS?

·Each member should bring to ·Their motivation should be the

the table different expertise and company's advancement rather
skills that relate to the company's than their own and therefore they
focus. They must be able to work must recognize and handle
together harmoniously and conflicts of interest that may
constructively to achieve arise.
common objectives and fulfill
fiduciary responsibilities.
WHAT MAKES A SUCCESSFUL
BOARD OF DIRECTORS?

·Additionally, an effective board

of directors maintains
transparency of its oversight and
decision-making, thus ensuring
the accountability of its
independent and ethical
standards and conduct.
C. EMPLOYEES CULTURE
An employee culture which is often called
as company's culture or organizational
culture is what defines the daily
experience employees have there. It has a
strong influence that may have a favorable
or bad effect on staff morale, recruiting
efforts, sales, and profitability.
TO HAVE A STRONG CULTURE IN THE COMPANY,
HERE ARE THE ELEMENTS TO BE CONSIDER:

.Core Values, these are the underlying

ideas and principles that direct people's
actions and choices inside the business
activity of the company. Integrity,
innovation, customer focus, and teamwork
are a few examples of values.

•Leadership, leaders must conduct an

honest evaluation of the present culture
inside their organization before they can
begin to foster a healthy one
 •Communication, A healthy
LEADERS SHOULD BE:
organizational culture is built on by
1.Accessible to most of the good and interactive communication.
employees. Organizations use communication to
2.Good communicator and include workers, monitor the
listener employee experience, and launch new
3.Prioritizing two-way initiatives that eventually have an
communication by listening to impact on culture.
employees.
4.Consistently imparting the
business’s purpose, mission
and values.
IN ORDER TO CREATE A PURPOSE-DRIVEN CULTURE THAT MORE
CLOSELY TIES WORKERS TO THEIR JOB, THE COMPANY SHOULD:

1.Make sure that they understand their goal or mission.

2.Adopt a set of principles to guide their activities while they carry

out your purpose or goal.

3.Share the mission, values, and purpose in a clear and concise

manner.

4.Share concrete instances of how workers have contributed to the

success of the company often
D.FINANCIAL RESOURCES
Financial resources are the money and
other resources used to finance an
organization's operations and
investments. A firm can raise and use
its financial resources in a variety of
ways such as investments, sales,
partnership, and projects.
 E. PHYSICAL RESOURCES
In an organization, physical resources
can be identified as all the tangible
items useful in the business's daily
operations. Additionally, they are
necessary for the firm's production,
including items beyond the raw
materials. Some of the resources are
used to operate the business or
provide products and services.
IMPORTANCE 4 PROCESSES

The importance of good •Plan physical resource

physical resource management management
is to ensure you have the right •Estimate time and cost of
physical resources at the right physical resources
place in the right time, in order •Acquire the physical resources
for your project to proceed as •Monitor & control the physical
planned. resources
F. HUMAN RESOURCES
·Human resources are also an
important asset for every firm that
employs people. Organizations can
achieve many of their internal goals
with the assistance of human resource
professionals.
5 MAIN DUTIES
Talent Management
Compensation and Employee
Benefits
Training and Development
Compliance
Workplace Safety
Consists of;

·Unions
An organization of workers who have
teamed to negotiate better working
conditions, salaries, and benefits. Trade
unions are established to protect the
interests of their members/workers.
Benefits
can negotiate better wages and benefits for
their members, as well as better working
conditions
more likely to have job stability than non-
union members
have the power to go on strike if they feel
their rights are being violated

Risk
can actually limit the company’s ability to
make changes or adjustments to its
workforce
•Organizational Culture and Conflict
As individuals have personalities, organizations
have cultures. Each organization has its unique
culture that separates it from others.

•Professional Bodies
Professional bodies promote professional
knowledge and practice by developing,
supporting, regulating, and promoting
professional standards for technical and ethical
competence standards. They strive to preserve
and develop professionalism in order to provide
high-quality professional services to society
G. ORGANAZATIONAL
RESOURCES
·By effectively allocating and utilizing
these organizational resources,
companies can optimize their
production capabilities, improve
efficiency, and ultimately deliver high-
quality goods or services to their
customers.
WHAT IS EFFICIENCY? WHAT IS EFFECTIVENESS?

Making sure that the goal of

·This how the manager reduced
the organization should be
the resources used such as
specific, measurable,
labour and raw materials and
achievable,realistic and timely
lessen the time that needed to
to make sure that is possible
produce an output.
to achieve and ensuring all the
plan and its processes should
be allign to the objective .
ORGANIZATIONAL RESOURCES CONSIST OF THE FOLLOWING:

People and their Skills Raw Materials

Computer and information

Know-how and experience technology

Machinery Patents
ORGANIZATIONAL RESOURCES CONSIST OF THE FOLLOWING:

Financial capital

Loyal customers
2. SWOT ANALYSIS
SWOT analysis is one of the
most widely adopted strategy
tools in planning and
management techniques used
to identify strengths,
weaknesses, opportunities,
and threats related to business
competition or project
planning
 STRENGTHS OPPORTUNITIES
are internal, positive are external factors in your
attributes of your company. business environment that are
These are things that are likely to contribute to your
within your control success.

WEAKNESSES THREATS
are negative factors that are external factors that you
detract from your strengths. have no control over. You may
These are things that you want to consider putting in
might need to improve on to place contingency plans for
be competitive. dealing with them if they
occur.
 STEPS TO CREATE A SWOT ANALYSIS

1.To generate a comprehensive 3.Determine the internal issues

evaluation of the present state of that disadvantage your company.
your busines/organization, gather This may be a result of a lack of
both internal and external data resources, outdated technology, or
poor management techniques.
2.Identify the internal factors
that give your organization an 4.Identify the external factors
advantage over others. This can that could negatively impact your
include your unique selling organization. This can include new
proposition, talented employees, competitors, economic downturns,
or proprietary technology or changes in consumer behavior.
THANK YOU!