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Internal Environment of Business efficient cause of business Cause of business composed of : internal forces human elementswhole corporate structures with organizational objects: corporate structuresSuprastructures - corporate philosophy - mission, vision, goal, policies and strategies, organizational culture and climate cInfrastructures corporate bureaucracy, processes and resources II. Internal InfrastructuresInternal publics human elements (management and employees/workers) III. Internal Publics2I. Internal Suprastructures cCorporate strategy - principal framework of organizations effort in pursuing corporate goal - totality of all the programs, projects, operations and undertakings of organization to achieve the corporate goalPolicy Strategy Framework Slide 10Corporate Level- Corporate Policy- Corporate Strategy- Corporate Goal- Corporate EndeavorMajor Policy Level- Program level, program strategy and objectives- Project level, project strategy and objectivesOperating Policy Level - Activity level

Corporate ConceptCorporate both a structure and specific level of structure top organizational level of decision-makingStructure refers to whole organizationCorporate Entity combination of all structures corporation or companyI. Internal Suprastructures c Corporate Philosophy - management thought/companys way of thinking and directs its way of life - gives meaning to its existence - provides ultimate direction of operations Principles of Corporate Philosophy:Corporate Vision- companys aspirations- what the company wants to beCorporate Mission- statement what the company wants to do- provides direction for the companys goal- companys commitment to society - role in development of society and man

Corporate ConceptCorporate decisions involved the 3 factors of Corporate Endeavor: corporate policy corporate goal corporate strategy Corporate Endeavor refer to totality of the life and operations of an organization present status of organization what is at any given time starting point of subsequent development progress toward corporate goal Internal Environment of BusinessIII. Internal PublicscHuman Resourcestenal Environment of Business As subjects:Organization movers responsible for corporate dynamism

As objects:Recipients of the organizational objectives and rewards (salaries, benefits)

Symbiotic relationship between management and workersIndividual truly works for the organizational goal :- management achieve their objective- provide satisfaction of the workers needsOrganization truly works in support of individual goal:- individual achieve his objectives- motivated to work best Union philosophy could be influence by workers aspiration or motives of outside forces

I. Internal Suprastructures cCorporate code - set of standards that guides employees behavior - Code of Conduct, Code of Ethics, Employees Manual, Handbook of DisciplineCorporate goal - what the organization seeks to achieve as an organization in the pursuit of its mission - what puts the corporate endeavor into action - goal could be profitable service or service with profitCorporate policy - overall direction and basic guidelines for the corporate strategy - corporate level in the organizational structure - provides boundaries and direction of managerial decisions I. Internal Suprastructures cProgram Level - each of the major product of the organization - with program objective pursued by program strategy in the light of program policy

Project Level - division of the program - with project objective pursued by project strategy in the light of project policy

Activity Level - pursue its target in the operations guidelines - actual production of companys output (goods or service) c

Policy Strategy FrameworkI. Internal Suprastructures cOrganizational Culture Composed of:totality of all the organizational objectsshared or common orientation of members

Organizational Climateoverall impact of the organizational culture on the membersemployees interpretation of the organizational environment/employees perceptionsBest indicator is the employees morale

II. Internal InfrastructurescCorporate Structures Internal Environment of Business Consists of:Various hierarchical levels Human resources Different system and subsystems

- Expresses the superior-subordinate relationship

Corporate ResourcesHuman and financial resourcesMaterial/Technological resources of information, processes and toolsDimensional resources of time and space Organizational resources

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