If there is anything that is stead fast and unchanging, it is change itself. Change is inevitable, and those organizations who do not keep up with change will become unstable, with long-term survivability in question.
There are things, events, or situations that occur that affect the way a business operates, either in a positive or negative way. These things, situations, or events that occur that affect a business in either a positive or negative way are called "driving forces or environmental factors or forces."
There are two kinds of driving forces; Internal driving forces, and external driving forces. Internal driving forces are those kinds of things, situations, or events that occur inside the business, and are generally under the control of the company. Examples might be as follows.
· organization of machinery and equipment,
· technological capacity,
· organizational culture,
· management systems,
· financial management
· employee morale.
External driving forces are those kinds of things, situation, or events that occur outside of the company and are by and large beyond the control of the company. Examples of external driving forces might be, the industry itself, the economy, Demographics, competition, political interference, etc.
Whether they are internal or external driving forces, one thing is certain for both. Change will occur! A company must be cognizant of these changes, flexible, and willing to respond to them in an appropriate way.
External driving forces can bury a business if not appropriately dealt with. The question is, how does a business know what changes are occurring so that they can deal with them in a positive way. OK, that's the next issue.
In order for a business to succeed and gain the competitive edge, the business must know what changes are indeed occurring, and what changes might be coming up in the future. I guess you might call this forecasting. Thus, critical to the business is what we call "informational resources." It is the collection and analyzation of data. Some examples of critical information might include the following:
The above are just some issues organizations must be on top of. Well it's never easy, but organizations that are successful include all of the above (and more), to develop the appropriate tactics, strategies, and best practices, to ensure successful out comes.
The differences between internal and external environment is: Internal environment involve within the organization, which are the employee attitudes,new equipment,strategy,work forces. The organization has the control of these matters because it happen within the organization unless like external environment. AND for the external environment,is clearly stated with the word external itself which means outside of the organizations which effect the changes in the organization which the organization does not have the control of it. External environment are involved by the PESTLE- Politic, Economy, Social, Technology, Legal and Environment.
Internal forces refers to thoughts, feelings, and beliefs within a person. Example: you think about (internal) drinking a soda so you decide (force) to go to the store to buy one. External forces refers to anything outside like parents telling you to take the trash out. Example: parents are outside of you (external) and they are telling you (force) to do something. Hope that this makes sense for you
Directenvironment forces
Two main groups of changes affect managers' jobs and are significant to an organization: external forces and internal forces. With external forces, the need for change comes from various sources outside the organization: marketplace, governmental laws and regulations, technology, labor markets, and economic changes. Internal forces originate from the internal operations of the organization or from the impact of external changes. They include redefining an organization's strategy, workforce, new equipment, and employee attitudes. Both types of changes are critical to the success of a manager and his/her organization.
Refers to the factors in the market which impact your business, like government policies, competition intencity, price war / elasticity etc etc.,
It forces managers to view their organization as part of a whole. It encourages managers to focus on better communication and cooperation within the organization. It makes managers acutely aware that good internal management of the organization may not be enough to ensure survival. It forces managers to be aware of how the environment affects specific parts of the organization.
Internal environment factors are management changes, employee turnover, and financial changes. External environment changes are threats from competition, political factors, the industry, and government regulations.
The internal marketing environment is commonly referred to as the micro marketing environment. These are the small forces that will influence the ability to attend to clients within a company.
Internal forces refer to factors within an organization that drive change, such as leadership decisions or employee morale. External forces are factors outside the organization, like market trends or government regulations, that influence change.
Internal forces are easier to anticipate and design for because they are usually within the organization's control. External forces, on the other hand, are more unpredictable and can vary significantly, making them harder to anticipate and prepare for. Internal forces can be managed through strategic planning and organizational development efforts to align with the organization's goals and objectives.
Your external environments are aspects that your organization can't control, such as government, customers, laws, economic shifts, etc. The internal environment can be controlled, which can be employees, strategy management, profits, real estate, etc. Both are used during SWOT anaylsis and are common for businesses to use.
Typically, the internal environment includes issues like, things, situations, or events that occur within the organization and are basically under the control of the organization, and effect the organization in either a positive or negative way. For example, is the organization working with the latest technology. If it is, it would be beneficial and should affect the organization in a positive way. If not, it may have a negative affect. The external environment would include, things, situations, and events that occur out side of the organization, basically not in control by the organization, but affects it is either a negative or positive way. For example, they might include things like the economy, demographics, government intervention or interference, competition, etc. The important issue is that it is critical to obtain all the information about these internal and external driving forces, so as to analyze and deal with them in the most appropriate and effective way.