Page 92 - DMGT521_PROJECT_MANAGEMENT

Unit 6: Generation and Screening of Project Ideas

Also, discussions, interviews, and surveys can be used to assess the internal environment. Analysis Notes
of internal environment helps in identifying strengths and weaknesses of an organization.
As business becomes more competitive, and there are rapid changes in the external environment,
information from external environment adds crucial elements to the effectiveness of long-term
plans. As environment is dynamic, it becomes essential to identify competitors’ moves and
actions. Organizations have also to update the core competencies and internal environment as
per external environment. Environmental factors are infinite, hence, organization should be
agile to accept and adjust to the environmental changes. For instance, Monitoring might indicate
that an original forecast of the prices of the raw materials that are involved in the product are no
more credible, which could imply the requirement for more focused scanning, forecasting and
analysis to create a more trustworthy prediction about the input costs. In a similar manner, there
can be changes in factors such as competitor’s activities, technology, market tastes and preferences.
While in external analysis, three correlated environment should be studied and analyzed:
1. immediate/industry environment

2. national environment
3. broader socio-economic environment/macro-environment
Examining the industry environment needs an appraisal of the competitive structure of the
organization’s industry, including the competitive position of a particular organization and it’s
main rivals. Also, an assessment of the nature, stage, dynamics and history of the industry is
essential. It also implies evaluating the effect of globalization on competition within the industry.
Analyzing the national environment needs an appraisal of whether the national framework
helps in achieving competitive advantage in the globalized environment. Analysis of macro-
environment includes exploring macro-economic, social, government, legal, technological and
international factors that may influence the environment. The analysis of organization’s external
environment reveals opportunities and threats for an organization.
Strategic managers must not only recognize the present state of the environment and their
industry but also be able to predict its future positions.

Task Assess the strengths and weakness of Corporate Appraisal.

6.3 Corporate Appraisal

Different types of resources (tangible, intangible that include all assets, capabilities,
organisational processes, information, knowledge, etc.) lying with an organisation reflect certain
type of behaviour (organisational behaviour). These resources as and when used as per need
along with their behaviour develop synergy with an organisation. This determines their strength
or weaknesses in their specific field of business. The resource based view of a firm can better
discuss the internal environment of that organisation. The developed synergy elaborates the
level of competency of a firm showing its capability which leads to its strategic advantage.
The resources, behaviour, strengths and weaknesses, synergistic effects and competencies of an
organisation determine the nature of its internal environment.
The assessment of strengths and weaknesses is an early stage in strategic thinking, and one
where it is very easy to end up with meaningless lists of so-called strengths and weaknesses. The
unit will explore five ways of looking at strengths and weaknesses: assessment by managers,
often resulting in what many books call SWOT analysis; equilibrium analysis, which is one way
of forcing managers to make a more careful consideration of strengths and weaknesses; a process

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