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Homework answers / question archive / Performing an internal environmental analysis helps a company identify the strengths to build on and the weaknesses to overcome when formulating strategies
Performing an internal environmental analysis helps a company identify the strengths to build on and the weaknesses to overcome when formulating strategies. Included in this strategy is an assessment of the functional areas of the business.
To effectively and efficiently manage strategy, a company must plan, execute and coordinate the functions of accounting, finance, human resource management, management, research and development, production and operations, and marketing.
Demonstrate a thorough understanding of how each functional area works and how the functions are interdependent.
Accounts: accounting department provides financial support to the business. It keeps the record of accounts receivables, payables, inventory, assets and liabilities of the company and others.
Human resource: primary function of this department is to recruit potential candidates. The job of human resource department is to maintain a well-qualified workforce in organization.
Management: function of management is to plan, organize and control the activities of the organization. It takes care that all the departments are working according to the company's guidelines.
Research and development: functions of this department include brining new technologies and methods of production and overall development of the company's products.
Production and operations: this department is responsible for the production of company's products. It included planning, controlling all the activities and resources that are related to the production of goods.
Marketing: marketing department is responsible for marketing the product. It includes advertising company's products to potential buyers.
All these functions are interdependent that means these functions work simultaneously in order to develop goods and services. For example, unless and until finance department prepares the budget for business activities, marketing department will not get money to advertise, production department will not get money to extract raw materials.
