There are two types of environmental analysis of an organization: specific and general. When one conducts a study on the specific environment, he or she focuses on examining the organization’s internal elements. It is possible to note that “internal factors include aspects of HR (owners, managers, and employees), financial aspects, technical aspects of production, and marketing aspects” (Indris & Primiana, 2015, p. 188). The general environment analysis is aimed at assessing and considering the context and critical factors of the external environment of the organization. It includes economic, political, and socio-cultural aspects, natural and geographic conditions, global technological advancements, and forces (Indris & Primiana, 2015). Moreover, external factors consist of the role of consumers, competitors, suppliers, and business partners.
The practical application of the environmental analysis can be demonstrated in the examination of internal and external factors of the Veganoteca vegan shop. From the perspective of the specific environment, Veganoteca is a store owned by two women who are the only employees of the business. They promote a healthy and non-violent lifestyle and often participate in various festivals and charity events. The shop has a good reputation; therefore, business income has been increased.
From the perspective of the general environment, the store is located in a big city, Barcelona, where a significant number of the inhabitants are interested in vegan products. The vegan industry in Barcelona is growing, and products tagged as being suitable for consumption by vegans are becoming more common. On the one hand, it has led to an increase in sales. On the other hand, it has resulted in a significant rise in the number of competitors in the market.
The importance of the analysis of general and specific forces of the organizational environment for strategic management is determined with two factors. First of all, it allows defining the corporate culture and relationships between participants. Secondly, it makes it possible to consider how a particular organization builds its interaction with the external environment and how it treats its customers and what methods it chooses to be competitive on the market. The information obtained may be used for the development of a new strategy of the organization that is necessary for its development.
Reference
Indris, S., & Primiana, I. (2015). Internal and external environment analysis on the performance of small and medium industries (SMES) in Indonesia. International Journal of Scientific & Technology Research, 4(04), 188-196.