Internal Environment in Business: SWOT Analysis, Competencies, and Capabilities

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENT
INTRODUCTION.......................................................................................................................................3
SWOT.....................................................................................................................................................3
Importance of SWOT..............................................................................................................................3
Competencies and capabilities.................................................................................................................3
Distinctive competencies and distinctive capabilities..............................................................................4
Organization of resources........................................................................................................................4
Tows Matrix............................................................................................................................................5
Production or operations department.......................................................................................................7
Human resources department...................................................................................................................7
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
The internal environment in a business context refers to the marketing strategies, existing
products, capabilities, abilities, etc of an organization in the market. It is very important for
businesses to understand their internal environment before they work on their external
environment of the organization so that there is a better functioning. The components of internal
environment are labour management, policies, financial resources, planning, vision promoters,
objectives, value system, etc.
SWOT
SWOT is an analyse tool which is used by organizations to understand the internal
environment of the organization and SWOT stands for Strength, Weaknesses, Opportunities and
Threats. This can help the organization to plan for the future of the organization according to this
internal analyse tool so that the risk factor reduces in the organization and the company will be
able to have a stronger market share.
Importance of SWOT
This can help the organization to understand their internal environment better which is a
very essential factor for the organization so that there is a better functioning. This can make the
organization function according to the competitors as well in the market (Mendenhall and et.al.,
2017). Lloyd bank is well aware of its strengths and weaknesses in the market which is why they
are having an effective strategy for themselves so that they can lead in this industry.
Competencies and capabilities
There is ability and skills in an organization which need to be in knowledge of the
organization so that they can use them wisely and get a better functioning and market share for
themselves through this factor. The organization must know their abilities and skills which can
help them grow more in market so that they can plan their steps accordingly.