Event Coordinator, Promotions Coordinator and CoachingĬoordinator).When an organisation is a for-profit business that operates in a very competitive environment, its organisation structure may help or hinder the ability of the organisation to react to change. Secretary, Treasurer and Ordinary Committee Members), the salaried staff of the organisation and all the volunteers that have roles as coordinators of various business functions (e.g. In a non-profit organisation, the organisation will include the management board or committee (i.e. Organisation structure is essentially the way that the work needed to carry out the mission of the organisation is divided among its workforce. May be impeded by their structure, constitution and/or forms of Positive attitudes of staff and volunteers will not only make the management task easier but also will be noticed and appreciated by customers of the business or members of organisation. Impact on the organisation's ability to implement strategiesįor development despite however thorough the planning processes. TheĪttitudes of staff and volunteers, and their ability to "go the extra mile" makes a very significant difference. The culture within the organisation is a very important factor in business success. Nevertheless, training of staff is an essential aspect of good business management, and even in difficult financial circumstances is an achievable strategy. In pursuing both recruitment and training strategies, an organisation is often limited by its financial strength. For this reason, organisations pay particular attention to the recruitment of staff and also to engage in the training of staff and volunteers to build the organisation's capability. Workforce is a determining factor of success. The knowledge, experience and capability of an organisation's Tableġ: Factors in the internal environment and their affect on the business/organisation Generally the strategic planning process will examine the strengths and weaknesses of the organisation (see SWOT analysis), and it is likely that significant discussion will center on the relative strength of internal environment factors. Table 1 below identifies important aspects of the internal environment that can significantly impact on the well-being of a business or organisation.
However the managers of a business or organisation do have some measure of control as to how the business reacts to changes in its external environment. The managers of a business have no control over business competitors, or changes to law, or general economic conditions.
The external environment, on the other hand is not controllable. To some extent, the internal environment is controllable and changeable through planning and management processes. The internal environment is very much associated with the human resource of the business or organisation, and the manner in which people undertake work in accordance with the mission of the organisation. Explanation of these factors is found below.Īll businesses have an internal and external environment. The following diagram provides examples of factors that are agents of change and need to be considered in the strategic planning process. Change is a certainty, and for this reason business managers must actively engage in a process that identifies change and modifies business activity to take best advantage of change.
Environmental Factors in Strategic PlanningĪny business to grow and prosper, managers of the business must be able to anticipate, recognise and deal with change in the internal and external environment.
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