Strategic Management: Internal and External Environment

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1. What is strategic management?
Tactical administration is the process of being able to follow the crucial things in an
organization so as to make it a success (Rothaermel). For an organization to be successful, it
must therefore make strategic decisions. These decision helps in ensuring that the company
remains competitive with the others and ensures that it is in the right track. Thus, strategic
management entails the following: examining the external and internal weaknesses and strengths,
putting in place the right plans, implementing those plans, and assessing the success of those
plans.
2. Discuss the fundamental issue about internal and external environment. What are the
three components of strategic management?
Internal environment can be defined as the forces affecting a business from within either,
positively or negatively. Examples would include: communication, structure of the organization,
and leadership among others (Rothaermel). On the other hand, the external environment are the
forces that affect the business from outside whether negatively or positively. Examples would
include: economic, political, technological, and social. On the other hand, the three components
of project management are cost, time, and scope. These can therefore, be defined as the
constraint’s that affect the success of a project.

Name 2
3. What is strategy formulation, strategy implementation, and strategy evaluation?
Approach formulation is the art of defining what the business wants to achieve at the end
of a certain project. It also includes, having a clear picture of what the final project should look
like at the end. On the other hand, strategy implementation is carrying out of the planned things
to actualize the same while, strategy evaluation goes back into analyzing if the planned things
were achieved (Dupont).
4. What is COMMON to strategy formulation, strategy implementation, and strategy
evaluation?
Some common characteristics of the three issues mention above are the mission, vision,
and core values.
5. What is a CAPSTONE course?
Capstone are projects that are developed to help students to think straight and solve the
underlying problems. Thus, students gain skills such as team working, good communication
skills, and research skills among others (Martin 13).
6. Explain how changes in interest rates affect the automobile, home construction, and
auto repair industries.
The changes in the interest rates affects almost all sectors both positively and negatively.
A drop in the interest rates would affect the listed industries positively, since people would be
able to borrow and invest at low rates (Dupont). On the other hand, an increase in the interest
rates affects businesses negatively.