BusinessStrategic planning

Internal and external environment of the enterprise. Enterprise environment analysis

The procedure for managing any organization is a complex, cyclical process that requires a clear understanding. It is important to know not only the stages of production, but also to understand what are the internal and external environment of the enterprise, and also determine their degree of influence on business entities.

The essence of the economic activity of the enterprise

Each organization carries out a complex process in which all segments and divisions of the subject of modern business are involved. The economic activity of the enterprise and represents the interaction between all components of production throughout the entire cycle from the purchase of raw materials to the sale of goods to the consumer.

For successful business management it is not enough to understand the mechanisms of interaction of constituent elements, but it is also necessary to analyze the process both from within and outside.

For the purpose of detailed and correct analysis, the economic activity of the enterprise is divided into several aspects, from which the main indicators are extracted, which are used to monitor the dynamics of activity in different reporting periods.

Synthesis methods of analysis are often used: all indicators are combined into a single mechanism, and the relationship between them is monitored, the degree of influence on each other and the level of interdependence of factors among themselves (for example, how the indirect costs depend on gross income and, conversely, in the reporting period or Previous).

Activities

Undoubtedly, the activity of the organization plays an important role in the immediate procedure of analysis. You can not evaluate by the same factors, for example, a hotel complex of a private type and a company that produces cellophane packages with a state share in the capital.

Depending on the form of ownership, distinguish between private and public enterprises. The latter species differ in that they have a portion of state capital. The first include private and cooperative economic entities.

In addition, the type of activity of the organization according to the degree of entrepreneurship can be both commercial and non-commercial. In this case, the name speaks for itself - the latter do not set as their first priority the acquisition of profit as a result of the main activity and function more quickly according to trade union, religious and fund principles.

Also in the Russian legislation there is a ranking of organizations according to economic activities. This list is concluded in the Unified Classifier and is represented by groups that include about a hundred names.

Business Environment: Definition

The organization can not function separately, according to the plans and tasks set, without interfering with the factors affecting its operation. The reasons can be diverse: weather conditions, the action of competitors, the work of accounting, those or other actions of employees of the department for recruiting personnel, etc.

All these events can be brought under a separate concept - the environment of the enterprise. Without it, no business entity can do without, and sometimes the environment can influence both positively and negatively, despite the abstract nature of its definition as such.

Suppose a person was late for work for the reason that his car broke down - he was adversely affected by the external environment. But if he came early because of the fact that he met an old friend and he drove him, then there is a positive influence of the external environment.

The business entity is not an exception - its activities can be affected by the internal and external environment of the enterprise in a positive or negative aspect.

What is the environment of an enterprise

So, we decided that any changes in the functioning of the business entity depend on factors affecting the production process .

However, it is not entirely correct to divide the influencing indicators into the purely internal and external environment of the enterprise, since each of them can be divided into several subgroups. So, for example, any field of activity can be divided by the degree of influence, the factors of the distribution of forces and the area of impacts.

Internal environment of the enterprise

Any components that take place within the enterprise and somehow influence the economic process are elements of the internal environment of the economic entity. This phenomenon is a completely manageable process and can be arbitrarily regulated by any managerial decisions, which together constitute the mechanism of interaction between technological and organizational engines.

Internal and external environment of the enterprise have a clear distinction among themselves in its components, so, the elements of the first are:

  • Labor resources (ordinary personnel);
  • Management capabilities (leadership);
  • Technological stocks (production equipment);
  • Advertising promotion of goods (marketing group);
  • Financial security;
  • Company culture;
  • Social image.

These indicators are not permanent, therefore some business entities may lack some of them. All of the above elements can be combined and highlight the factors of the internal environment of the enterprise:

  • Economy (includes marketing and financial elements);
  • Work capacity (cultural and image elements of the environment, staff structure);
  • Technological support (includes the entire production group).

The procedure for analyzing all of the above forces allows the company to strengthen all its weaknesses and improve its strengths, which allows the business entity to find greater resilience in the external market.

The internal environment of the enterprise by example

Let's look at the practical side of how changes in the internal environment can affect the business as a whole.

Suppose you have a staff that is more or less qualified, but not enough to work quickly and efficiently. You, as a manager, organize advanced training courses aimed at the specifics of your enterprise.

As a result, the staff of the course receives answers to many of their questions and now it takes less time to perform direct duties, because the employee does not spend his working time, seeking help from colleagues, and thereby distracting them from their work.

We have considered changes in the labor factor, let's try to change something in technological support. For example, replace the equipment with a new one. Thus, we exclude or minimize production stagnation due to the failure of a particular mechanism. And this means that we no longer spend money on repairs of fixed assets, thereby affecting the economic factor, changing the indirect costs of capital investment.

Work environment

Since we are talking about technological support, let's focus on the company's production environment in more detail, as on one of the main components of the internal one.

Every manager should be treated with the greatest responsibility for product planning, since this component is not always permanent, but one of the longest ones.

The production environment of the enterprise includes the following components:

  • Any space on which the work process is carried out: including the main facilities, outbuildings with all the infrastructures included;
  • Software and hardware, which is involved in the main process;
  • Other services and systems that are involved in the auxiliary production line.

Each sector of the sphere responsible for the output of products must be equipped in such a way that it can serve the enterprise for many years.

The external environment of the enterprise

Any environment outside the business entity, which in some way affects its activities, even indirectly, is called the external environment of the enterprise. In this case, it has macro- and micro-collisions. The former relate to indirect driving forces, while the latter are based on the activities of other entities directly related to the enterprise.

The main factors of the enterprise environment:

  • Nature (weather conditions, impact on production through their change);
  • Demographic indicator (change in the average age of the population);
  • Economic component (any processes occurring in the country and affecting national and foreign exchange markets, the presence of competitors);
  • The institutional engine (any actions of government and fiscal bodies).

So, we can say that the external environment of the enterprise is not in any way subject to managerial decisions and can affect the business entity chaotically, without a clear algorithm and direction vector.

The external environment by example

Let's give an example of how the external environment of the enterprise affects the business entity in the demographic aspect. Suppose there is a corporation that has been producing goods for newborns for several decades, while in recent years the average fertility rate has dropped by 20%.

Roughly speaking, entrepreneurs will have to adjust to demographics and slightly reduce volumes (if, of course, during these most reporting years they failed to enter the foreign market).

Consider how the natural factor can affect the business entity. For example, a hurricane, a storm warning - and the supply of raw materials are disrupted due to unfavorable weather conditions.

The institutional indicator is manifested in practice under the guise of government regulations, changes in legislation and the taxation process. Jumps in exchange rates are an economic factor, in which the competitive environment of the enterprise plays an important role, with which, incidentally, the manufacturer can fight more or less.

Competitive environment

It is known that competition is a kind of rivalry, which can be caused by the release of the same goods, sold in the same geographical framework.

With a competitive environment, you can fight, varying some of your business. For example, the price policy. The cost of goods is one of the indicators that directly affect the choice of the buyer. Therefore, the lower it is, the higher the demand.

However, do not forget about the quality of the products. Often unscrupulous producers sacrifice quality for the sake of reducing the price threshold. Reduce the cost of goods can be in other ways: for example, reduce the cost of supply or automate the production process, thereby reducing direct production costs.

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