The dynamics internal environment consists of:
- Organizational resources :They are bundle of tangible and intangible resources.Human,physical and financial resources ,tangible.Intellectual resources are intangible.
- Organization behavior :It affects efficient use of resources.The factors are :management philosophy,shared values,quality of work life,organizational politics and use of power.
- Strengths and weakness:The combination of organizational resources and organization behavior create strengths and weakness.Reduced strategic advantage.
- Synergistic effects :They make 2+2=5.They measured ability to make good on a new product market entry.Synergistic effects emerge from cost saving.Elimination of duplicate facilities and effective use of resources.Its magnitude depends on compatibility of exiting product market with new product market.
- Distinctive competency :Core competencies are organization's well performed activities.They become distinctive competencies when organization does them well compared to competitors.They can be result from innovation,special skills information technology,low costs,better services.
- Organizational capabilities :Capability is what an organization can be well.It is skills at coordinating resources putting them to productive use.It is sum total of resources behavior,strengths,weaknesses,synergistic effects and distinctive competencies.It enable an organization to exploit opportunities and minimize threats.