In: Operations Management
Don, you bring up the importance of knowing and understanding your internal environment. Internal environmental scanning is done to determine the organization's strengths and weaknesses. For instance, should the external environmental analysis uncover a lucrative opportunity, does the organization have the resources, personnel, technology or capacity to pursue it? What good would it do to find an unmet need or opportunity if there is no way for the organization to fill that niche? That is why it is important for an organization to understand its internal environment.
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Everything said above is correct.
It is essential to understand any business organization's internal environment because it would help in assessing the strength and competencies of any business enterprise, which would help grab the opportunities and copy the threads given by the external environment.
We can also say that the external environment depends on the internal environment for the successful implementation of any alterations provided by an opportunity or a threat.
Furthermore, internal organization is under the control of organizations, so it is crucial to assess and manage it because any organization can do it.
Internal organization assessment helps the organization analyze the organization's weaknesses properly, and it would help them in correcting the same.
Apart from helping the business organization correct and improve the weakness, such analysis of internal organization helps convert those weaknesses into strengths.
The internal assessment helps the organization in focus on their strengths and competencies and helps in flourish them.