Romi Almanzor February 21, 2021

MBA-1a
Central Colleges of the Philippines

The External and Internal Environments

(by Kevin Manansala)

The business isn't like an isolated island. It does not exist in a vacuum, but rather in a constant
state of interaction with the different factors present in its environment. Such considerations can be
internal to the business or can be externally connected. The organizational environment is not a
homogeneous entity, but it reflects a dynamic blend of a large number of variables, each of which
has a specific effect on the organization.

Legal, technical-technological, socio-cultural and other constraints are imposed on organizations

by the environment. These together form the structure, such as the overall conditions under which
the company performs its activities. The setting thus directly or indirectly influences the processes
and dynamics of the organization's function within it.

If a company wants to thrive in the marketplace, it is important for them to fully understand what
variables affect their company's growth. Once they are aware of both positive and negative effects
inside and outside the sector, they can generate effective strategies to deal with any expected
situation. The analysis of internal and external variables is also considered the most important task
for an enterprise before launching any strategic marketing, or business plan.

To conclude, the performance of the business, which comes from both outside and within a
company, leads to a variety of factors. For the growth of the organization, either external or internal
factors are of the utmost importance. If an organization hopes to operate smoothly and effectively,
before making any decision, they need to take all these internal and external elements into
account.

As managers, the emphasis on the factors whether internal or external is imperative to consider in
making decision which in return will improve the organization’s strategic processes.