Question

Describe the relevance of analyzing an organization’s internal and external environment as part of strategy formulation.

Answer 1

Answer - The relevance of analysing an organisation's internal and external environment as part of strategy formulation is that it helps us to know our strength , weakness , opportunities available and threats .

strength like what can the company do best , what are the resources and assests of the company etc . So the company can work to improve its strength . Also , weakness like , where the company lags behind its competitors helps the organisation to work on its weakness and improve it .

Similarly external factors like opportunity and threats are there . So the analysing of external factor is important because the organisation can know what are the opportunities available that it can utilise and threats helps the company to know , who are the competitors of the organisation , who are the customers of the organisation and also helps to analyse the market trends like the demand in market etc .