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08 May 2015

Progress Analysis: Internal and External Environment

This post is also available in: Spanish

For a company to work well and achieve both its financial and R+D objectives it must have a good strategic plan which factors both the microenvironment and the macro environment:

The Microenvironment:

  • Tangible Resources: physical installations, equipment, staff…
  • Intangible Resources: Reputation, brand image…
  • Capabilities: innovation, communication…

The Macro environment:

  • Economic environment: analysis of the main economic characteristics that affect potential customers.
  • Demographic environment: analysis of the most noticeable features of the target population.
  • Political-legal environment: Analysis of the legal framework which influences business and competition.

These Micro and Macro environments are a part of the business ecosystem and is more important than it first appears. Within the microenvironment it is worth analyzing current and potential suppliers and the situation of all intermediaries (agents involved in product distribution and communication).

Once the business strategy has been decided and SWOT analysis has revealed all threats and weaknesses it is important to stay abreast of changes and market trends. This is possible by keeping statistical control of business activity and the evolution of results. This analytical control will help with decision making and will enhance the optimal functioning of the organization.


Why do organizations need to analyze the situation of the company and its environment?

Intelligent Analytics enable the conversion of data into useful and relevant information to distribute to the right people at the right time, so that they can make appropriate and, above all, well founded decisions. Intelligent Analytics help organizations to understand, analyze and even predict what is going to happen in the company and in the general business environment.