The-internal-and-external-environment.docx

The internal and external environment

　　　　When developing a successful company the number of factors. Some of these factors can be said to be internal, in that they are factors which forces inside the organization affecting its operation. Some of other factors can be called to be external and in that they are a set of forces and conditions outside the organization that can influence its performance. This essay will discuss the factors which may be of influence upon companies to change quickly and give the main reasons by the case of Coca-Cola’s success.
　　Analysis of internal environment includes many aspects, such as organizational structure, corporate culture, resources, value chain, core competency analysis, SWOT analysis. Analyses of the internal environment are divided into the growth stage of analysis, historical analysis of business and enterprise status analysis.The growth stage is analysis which stage does the companies in, and then targeted to the development of enterprise development strategies. Historical analysis of enterprises includes businesses operating over the past strategy and objectives, organizational structure, financial situation over the past five years or in the past few years. Analysis of business enterprises is including the existing business strategy and objectives, corporate culture, business and other rules and regulations.　　External environment is divided into four pieces, the external political environment, social environment, technological environment, economic environment and a general term. Political environment refers to the principle of national policies, the development of the political situation at home and abroad. Social environment refers to the population, income or purchasing power, cultural and educational level of residents. Technological environment and the industry refer to the level of science and technology and development trends. The economic environment is including macro-economic situation, the world economic situation and trade in economic development status. Among them, the enterprise market is a direct relationship with the company most closely and it is the greatest impact of environmental factors. The enterprise market is containing sales markets, supply markets, capital markets and the labor markets. The external environment can also divide into task environment and general environment. Task environment is forcing that have a high potential of affecting the organization on an immediate basis. General environment is forcing that typically influence the organization’s external task environment and through them, the organization itself. 　　Corporate strategy is not a continuous changes step; it appears stable for a period of time, changes in a period of time. It is a discontinuity for the non-recurrent activities. This means that for most enterprises the strategy often been formed in a relatively stable situation, unless unusual business operation, or the companies tend to follow the general direction set to move forward. That means that the success of the past operators often run the trap today, the current success of the operation for the future often planted the seeds of failure. Due to the changes of the environment, the no change will lose business response sensitivity. So it is important for the companies to get ready to change. Not only the companies should to carry out self-evaluation, but also to analyze the business environment in order to determine the existence of which the key strategic elements. “Companies that have managed to grow today are those that are most prepared to change” (Friedman , 2005).
　　There are many factors contributing to Coca-Cola‘s success, however, people believe that their key success factors are Marketing, Innovation, and Globalization. First of all, Coca-Cola Company in the market has its own research team, this team is to study the role of market environment and find ways to adapt to the market, and then proceed to market adjustments, the Coca-Cola to adapt to market changes. For example, US population growth is slowing and much of the growth comes from immigrants who generally drink less soft drink, they change their target to Asia. They open the market of china. That is a good example for the other companies; they have their own standpoints to adapt the changing world. They were among the pioneers of advertising techniques and styles used to capture an audience. They were also one of the first companies to offer a gimmick with their product, this being a mini yo-yo. (PINKS 2008) The external environment is constantly changing, and a very small change in external environments may lead to the demise of a company.
　　Innovation is another key for success. Coca-Cola has been able to survive and grow in an ever-changing market because of its ability to systematically innovate and deliver new products. (PIRNKS 2008) Internal environment in the development of enterprises is also very important, enterprises want a head start of competition, and good managers will need to change the idea of constant innovation.
　　That is showing the important of the innovation. Managers must understand the fit between the organization and its external environment. That means managers should understand the changes environment and then changes their products. If it changes to a wrong way, it will be failed in the future. So the managers have to analysis the worlds today, they have to know what is important for their customer. That explains the internal environment also important for company.
　　Last but not the least--- Globalization, Globalization itself is an environment, companies want to get higher returns, please go out.　　It is a process, referring to the material and spiritual products to break the flow of the shackles of regional and national boundaries, affecting every corner of the earth life. Globalization also includes cross-border movement of personnel. The movement of people is the spirit of the material and the highest level of integrated flow. In this part it shows the changes, there is no doubt that the world change anytime. The companies could not change anytime; they have to see these changes and then to change them to adapt the environment changes.
　　Marketing, Innovation, and Globalization are the main reasons for Coca-Cola’s success. Through the reasons people could find out the environment play an important part for the company’s success. Analysis the environment not only sees the inside which is the internal environment, but also to see the outside which is the external environment. These two things are a system, without the internal environment, the external environment cannot hold water; on the other hand without the external environment the internal environment cannot play a role in the future. So the most important thing for the company is that make good use of the internal environment and the external environment, this is the key to success. Through the success of Coca-Cola can be found all enterprises with the surrounding environment to change, external and internal environments to enterprise environments are essential to the development, which must be closely linked to success. The world is changing, and companies must be ready to change. Word count –1137　　Yu, (2006) Assessing External Environments. China: Chuang Ching Yun University Ltd　　Internal environment (2007). Homepage. Available from http:///question/ [accessed 19/06/07] Citation in text:(Internal environment 2007)　Enterprise External Environment (2008). Homepage. Available fromhttp:///view/ [accessed 01/02/08] Citation in text: (Enterprise External Environment 2008)Friedman , 2005　　Coco-Cola Key Success Factors (2008). Homepage. Available from http:///essays/Coco-Cola-Key-Success-Factors/145766 [accessed 28/04/08]　　Coco-Cola Key Success Factors (2008). Homepage. Available from http:///essays/Coco-Cola-Key-Success-Factors/145766 [accessed 28/04/08]