Dynamics of internal environment

The dynamic forces in internal environment consists of :

1. Resources :Organization work with resources.They have a strategic importance.Organization resources can be :

• Human resources :They consist of managers and employees.Unique human resources provides strategic advantage.
• Physical resources :They consist of physical assets.They can be building,plants,equipment,production capacity,technology and ownership of natural resources.
• Financial resources :They consists of capital,cash,debtors creditors and loans.
• Intellectual resources :They are knowledge based. They can be patent,trademark,copyright,brand,software,goodwill and relationship.
• Information resources :Information is power.Its acquisition,storage,analysis and retrieval are very important.Recent developments in information communication technology have increase its importance.

2. Competencies :Competencies are possessed by available human resources in organization.They are represented by knowledge,skills,attitudes,experience and potential for development.Unique competencies possessed by employees provide strategic advantage.
3. Cultural :Cultural refers to shared values,norms,belief,customs,symbols and artifacts that guide behavior.Organization must operate within the framework of organization culture.It affects strategies.
4. Stakeholders :They have a stake in the performance of the organization.They can be:

• Customers :They buy and consume products of the organization.They can be consumers,business and institutions.
• Supplies :They supply resources and inputs.
• Competitors :They directly compete with the organization in the market place.
• Intermediaries :They are middleman,financial institution ,facilitators and service agencies.
• Labour unions :They are organization of workers acting collectively to protect their interests.
• Pressure group :They are interest groups that pressurize organizations to protect their rights and interests.Organizations must fulfill stakeholder expectations.