INTERNAL ENVIRONMENT:

+ Broad of ditectors
+ Resources and capability
+ Culture and values
- The internal environment consists of member of the firm, investors in the frim, and
assets the firm has that directly impacts on its operations and outcomes.
1. Broad of directors: governing body who is elected by corporation’s stockholder and
charge with overseeing the firm that ensure it is running in a way that make the best
services for stockholders’ interest.
2. Resources and Capability: The O’s tangible and intangible assets such as finance
resources, human resources, and intellectual property.
 Employees and managers are good examples, who has skills and knowledge that are
valuable property to their company.
3. Culture and Values: the shared beliefs, attitudes, behaviors shapes O’ work environment
and interactions.
- Corporation culture is extremely important for success as it impact employee morale,
retention and productivity that mutilated affects the bottom line. A strong corporation
can also differentiate from its competitors, leading be more attractive to customers and
potential hires.

EXTERNAL ENVIRONMENT: PEST

1. Economic condition: the overall health and vitality of the economic system in which the
O operates. Economic condition and factors include unemployment rate, interest rate,
GDP, and customers’ disposable income.
 A construction company, for example, would look at the economic growth in housing
sector to understand the momentum is improving or slowing, and adjust the business
strategy accordingly.

2. Social-cultural condition:
- They reflect more broadly diversity issues relating educational opportunities, accessing
to housing / jobs options and more.
- The socio-culture environment, social values as ethics, human rights, gender roles, as
well as social concern, beliefs, traditions, the standard of literacy, and lifestyles, etc are
some of the major factors that can have an impact over business enterprise. These
factors are common to all similar organization.
 The rise in health consciousness in general population, for example, leading companies to
market products differently. As a result of new awareness among consumers, more soda
companies now offer more diet soda options and natural fruit flavors that attracts health-
conscious consumers.
3. Technological condition: they often help business improve their own internal process,
but technologic development in general environment may shape how businesses
operate. Depending on O, these improvements can negatively or positively affect their
business.
 - The factors are merging technology: Research and Development, technological
advancement, reduce communication cost…
 In today’ time, more and more businesses are ramping up their spending on social media
usage for product promotions, reputation management, …
4. Political-legal condition: this environment is somewhat common all similar firm or
somewhat specific for individual firms. It consists of three main components:
government, legal and political. These factors express the relationship between
government and business in some respects as Free market economy, Pro-business and
anti-business sentiment of government that influences company’ activities, including
antitrust issues, taxes, and reputation, affecting the ability to compete…
 In respect the copyright and intellectual property protection: Copyrights infringement, in
some countries

POLC
1. Planning: setting the O’ goals and deciding how the best to achieve them.
 ex: A start-up company set the objective to develop comprehensive brand and be
nationally recognized within 5 years.
2. Organizing: is how the activities and resources to be group, including 4 “A” steps:
- Assigning jobs/ tasks/ responsibilities
- Arranging orders/ priorities
- Assembling resources
- Allocating resources
 To expand the company’s reputation and get 1000 USD in revenue, a middle manager would
find and establish partnership with agents, distributors and resellers in new markets
nationwide.
3. Leading is initiating and maintaining the motivation of both individuals and teams.
 Most of businesses hire staff based on their expertise and experience in specific fields,
and the leader should learn to interact and listen to the employees. For example, if the
manager is an expert in investment, they may need someone from the finance or marketing
departments to advise them on some issues.
 How quickly the conflicts are resolved determines how competent a leader is. A good
leader should mediate when the conflicts break out to prevent disagreements within the
company. The staff would see that their leader has the heart and mind to embrace the
challenge so as not to break the O.
4. Controlling is monitoring the organizational process toward the goal attainment. It is
used to compare the factual performance with the standard of the company, and to
make sure that the activities are performed according to the plan.
 To facilitate the R and D department to improve efficiency.
 To calculate the actual quantity and quality of the product.
 To meet the deadline of the project.
 To eliminate the wastage of the resources.
Level of Management
1. Top manager: who is setting the O’ goals, the O’ policies.
- The main responsibility of Top-level management put a lot of weight on Planning –
spending 50 – 60% time and energy.
2. Middle manager: who is as an intermedia between Top management and Lower-level
management. They interpret plans and policies created by the Top management and
implement to per their department, supervise and coordinate the lower-line.
- Organizing is the major responsibility of the Middle managers in the system.
3. First-line manager: who are responsible for achieving the daily task assigned to them by
the Middle level management.
 Lower-line managers are responsible for Leading and Controlling daily work and analyze
the bottlenecks, supervising and motivating the employee under them.

Fundamental Managerial Skills

1. Technical skills are frequently utilized to accomplish and understand the specific kind of
job done easier. Knowing how to write a business plan, using statistic to analyze a
market survey, preparing visual aids and delivering persuasive presentation are technical
skills.
- These skills are the most important at First-line management and employees of
business.
- In today’s time, it is undeniable that technology may be used to help the students
advanced in their future careers. With this factor in mind, IT technical expertise
definitely growth more crucial in the future.

 Recently, almost students are familiar with web-based presentation tools that will have them
communicate effectively within and beyond the class. There are numerous innovative tools to
help express the dynamic presentations as PPT, Canva, Prezi…
 Excel is one of the most reliable data management tools available. Excel that is used by
professionals in diversity fields, helps users to calculate, evaluate, and create the quantitative of
data sets. The data later is used by business managers to make informed decisions. Learning
Excel and become proficient in it that provide students a boost in the competitive advantages in
the job markets.
2. Interpersonal skills: the ability to communicate with, understand and motivate both
individuals and groups with spirit trust, enthusiasm, and positive impacts. One with good
human skills can get more easier in the way personally and professionally. By contrast,
without it you may damage your work environment and create conflicts that impair your
productivity, and the values od your team and the company.
- Human skills consistently crucial across all levels of managerial responsibility.
- Interpersonal skills are very important to be honed early on because they dictate how a
student relate with others and success in their future life. A person forms their
characteristics, maintaining lasting relationship, and overcomes adversities through the
human interaction. How parents react with their child will create ideas on how to
socialize, how to treat others so lead by examples by being mindful what you say and do
around them.
 - Some factual examples, in teamwork:
 Your ability to connect with others’ feelings and thought that helps you
strengthen the bond with the colleagues, trust, and inspire loyalty.
 When you respond a request for the information that you ease the frustration of
others and show your values at the time, thoughts, and energy.
3. Conceptual skills: the ability to critically and analytically thinking is called Critical
thinking. This is crucial skill for the manager to think in an abstract to make business
decisions.
- Critical thinking gain in important at one move from Middle level to Top-level
management.
- When a person is encouraged to be a critical thinker invariably enhance sense of
curiosity about happenings around him. In the process, they shape their own informed
ideas, mostly out of the box ones that improve their creativity which all critical thinkers
would deal with daily in personal and professional life. Finding answer in a logical
rational manner that helps them to get the creativity juice flowing.


The strategic planning process

1. Type of planning
- Strategic planning is a comprehensive plan for accomplishing the Organization’ goals.
- It is a management process for defining the long-term vision (last at least 3-5y),
directions, and actions.
- Top-manager mostly conduct the Strategic planning.
 A organization want to expand their business globally. They will first define their current
situations, and mapping out all of resources that they have – Setting the goals for what they
want and assessing how much resources available. After knowing all of information, they will
create a map of where they want to expand, and what steps need to be taken to achieve the
goals.
2. Tactical planning
- Tactical planning is comprehensive ad ongoing aimed at formulating and implementing
effective strategies; a way approaching business opportunities and challenges.
- Tactical planning includes short-term objectives ( last at least 2 years), and tasks
designed to create specific results within a limited time.
- It is a practice of prioritizing tasks need to be accomplished and delegating them to their
team member.
 A company want to win the bid from another business must create a viable proposal that will
be successful. To win the bid from competitor, the tactical strategy that includes small actions, is
created such as reducing the price of its own bid.
3. Operational planning:
- An operational planning outline the key objectives and goals, as well as how the
business achieve them.
 - Operational strategy includes more detailed objectives with concrete deadlines and task
assignment that focuses on day-to-day process, such as staffing levels and inventory
quantities.
 It is important to ensure that everyone completes their tasks assigned in the plan to
implement the long-term plans for the business.

SWOT: is careful evaluation of the Organization’ internal strengths and weaknesses, as well as its
external opportunities and threats
- Organization strength: a skill or capability that enables an organization to create and
implement its strategies. A major goal is identifying the Core competency – things that
only an organization has or EXCEPTINALLY WELL in comparison with competitors. Core
competency may be found in special knowledge and expertise, superior technologies,
efficient supply chains, or unique distribution system.
- Organization weakness: a skill or capability that does not enable an organization to
choose it and implement their strategies. Consider weakness is shortage of talented
workers, lack of financial capital, or low/ decline margin…
- Organization Opportunities; represent the growth and improvement areas for a
business. Consider like a growing total addressable market (TAM); technological
advancement, or change in norms that may create new markets…
- Organization Threats represent risks to a business and ability to operate. It tends to be
similar to “OO” but directly opposite. Consider like a business in decline (be similar to
decrease TAM), technological advancements may disrupt an existing industry by
substitute products and services, the change in norms may make any products less
attractive and reduce the number of consumers