Internal Factors Affecting Corporate Strategy Dev - Essay Sample

Introduction

The internal environment is the factors within a company that influences the operation of the organization. Unlike the external environment, the company has control over the internal environment (Weissenberger-Eibl et al., 2019). The internal environment comprises product life cycle, personnel, organizational structure, among others. The paper explores how these internal factors affect the development of the corporate strategy.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Product Life Cycle

Any product undergoes a product life cycle ones it is introduced into the market. The first stage is the introduction or the initiation stage; the growth phase follows it, then maturity, and finally, the decline (Ameri & Dutta, 2005). The life cycle affects the development of the corporate strategy since the company has to develop new measures to prolong the life cycle. The initial corporate strategy might be left out as the company engages in more marketing.

Personnel

Personnel are the people who are employed in the company. It is critical to ensure that the employees are focused on developing and achieving the corporate strategy. The human resource should ensure that the employees’ skills match the tasks that they are given. The staff should also be motivated so that their personal goals can match those of the organizational strategy (Hornsby et al., 2002). Personnel are a vital tool in realizing the objectives of any organization.

Organizational Structure

Organizational structure is the system that shows the hierarchy in a company from the top-level management to the supporting staff. The formation determines how the instructions are issued and everything they do (Marx, 2016). When the corporate strategy changes, the organizational structure also should be changed for the strategy to be achieved.

Conclusion

The internal environment of a company influences the development of its corporate strategy. The product life cycle, personnel, and organizational structure are some of the internal factors that can affect the company's growth. An organization has the ability to change these internal factors so that they can align with the corporate strategy.

References

Ameri, F., & Dutta, D. (2005). Product lifecycle management: closing the knowledge loops. Computer-Aided Design and Applications, 2(5), 577-590. https://www.tandfonline.com/doi/abs/10.1080/16864360.2005.10738322

Hornsby, J. S., Kuratko, D. F., & Zahra, S. A. (2002). Middle managers' perception of the internal environment for corporate entrepreneurship: assessing a measurement scale. Journal of Business Venturing, 17(3), 253-273. https://www.sciencedirect.com/science/article/abs/pii/S0883902600000598

Marx, T. G. (2016). The impacts of business strategy on organizational structure. Journal of Management History. https://www.emerald.com/insight/content/doi/10.1108/JMH-01-2016-0003/full/html

Weissenberger-Eibl, M. A., Almeida, A., & Seus, F. (2019). Systems thinking approach to corporate strategy development. Systems, 7(1), 16. https://www.mdpi.com/2079-8954/7/1/16/htm