An internal environmental review assesses all aspects of a company’s operations, including marketing strategy, manufacturing capability, and human resources. The review aims to identify areas of risk and opportunity, and rectify internal factors limiting growth. It also examines underutilization, redundancy, and financial resources.
An internal environmental review is a thorough review of all aspects of a company’s operations, internal orientation and mission. Aspects of operations typically reviewed are marketing strategy, manufacturing capability, and the company’s vision and leadership. All of these things are scrutinized with a critical eye to uncover those aspects that may be problematic, yet go unnoticed in day-to-day operations. Non-profit organizations can also conduct a similar analysis.
Company management typically initiates this internal analysis in an attempt to identify areas of risk and opportunity. Senior management conducts an inventory to assess strengths and weaknesses in the overall functioning of the organization. This is usually a comprehensive review with the goal of identifying and rectifying those internal factors that are limiting the company’s growth. Internal environmental analysis is in contrast to an external analysis, which would concern the macroeconomic environment.
An objective look at the company’s people is usually at the forefront of an internal environmental review, as human resources are the key to optimal business performance. The company’s human capital will likely be inventoried. Managers will likely conduct a total staffing capabilities review, assessing the depth of management talent and experience currently on board.
The company’s internal workplace culture will likely be assessed and how this may have shifted over time from its original mission and goals. Sometimes a business will use an outside firm to conduct the analysis. Such a move may occur when the company wants an external and objective view of the inner workings of the company.
In contrast to a staff performance review, an internal environmental review typically does not evaluate a company’s human resources with an eye toward the performance of a particular individual. This type of assessment would be considered part of normal human resource management. Instead, the sum total of the company’s human capital would likely be considered a major resource. An internal environmental review examines staff in terms of managerial competence and overall organizational staffing needs. Areas of weakness and understaffed, under- or over-qualified departments will likely be detected.
An internal environmental assessment is also conducted in order to diagnose areas of underutilization, functions that may be redundant and underdeveloped areas of opportunity. A company’s existing and projected financial resources are also reviewed in the analysis. Available capital is compared to anticipated needs for capital expansion and improvements. How the organization will be governed and how well it is working for the company in its current phase of operations will likely be included in the review. The company’s position and public reputation are also taken into consideration.
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