Summary of Unit 3 - Internal Environment

The internal environment of your company covers a huge area, which can leave much space for improvement. First we dealt with business structures, focusing on operational structures rather than organizational structures. Company resources were the next issue, where we distinguished different types of resources in your company. Cost-benefit analysis and break-even analysis are two tools that can help you improve your strategy. You should now be familiar with both tools. Benchmarking is a method that can help you learn from other firms, while the balanced scorecard and the SWOT analysis methods can help you refine your strategy according to company strengths and weaknesses. Thereafter, the concept of central skills or core competences was introduced, followed by the issue of Knowledge Management. The next two subtopics dealt with the issue of leadership. The differences between management and leadership were presented , as well as ways to motivate your employees. Lastly you were presented with the main principles of the X-Y-Z theory of leadership.