What is the company’s external environment? What is the company’s internal environment?
A strategy is a function of a company’s external environment and a company’s internal environment.
Midlands Pork Products Limited is Zambia’s leading company in the processing and sale of pork. However, the company has observed that the demand for pork has been declining in the last two years. Its
Required:
- What is the company’s external environment?
- What is the company’s internal environment?
- Given the company’s external and internal environments, recommend an appropriate strategy
Business doesn't run in a vacuum like people do. Businesses must negotiate their way through a wide range of relevant environments in order to operate. The way that a firm interacts with its surroundings determines how well it will do. A company is doomed to eventually disappear into obscurity if it consistently chooses a passive attitude toward the necessary environmental changes. Business must not only be aware of the various environmental factors, but also respect, adapt to, or somehow control them, in order to be successful. If the company wants to endure and grow, it must constantly analyse the surroundings and adjust.
Any company's primary difficulty is staying alive. A business needs to have at least the following two capabilities to survive over the long term:
(a) The capacity for success and
(a) The capacity to adapt
Environment comprises of elements that are primarily, if not entirely, external and out of the managements' and industrial enterprises' control. These are essentially the "givers" that determine how businesses and their management must function in a given nation, and they differ, frequently significantly, from one nation to another.
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