Business Administration Capstone class - Essay Example

Factors influencing organizations or businesses can be broadly classified into two i.e. external and internal environmental factors. The internal environment of an organization defines the actual working mechanism of the organization. It encompasses factors such as the organizational culture, employees’ policy, and in a nut-shell the factors which are internal to the organization that is the strengths and weaknesses of an organization (Dess, Lumpkin & Eisner, 2010). This is in contrast to the external factors.

The external factors constitute the opportunities and the threats that are present in the external environment for the organization. At all times an organization is faced by either Opportunities or threats, or both. These two factors not only present challenges to an organization, but also a long-term strategy that may assist an organization grow or prosper (SWOT Analysis, n.d.). For example, Technological changes, consumer culture and the state policies present both opportunities and threats to organizations.

Generally, opportunities present for a firm may also present similar threats. This is because at any instance they influence both external and internal environmental reactions. This reaction is what actually dictates the definition of a threat or an opportunity to a business. For example, government policy may be a threat or opportunity depending whether it favors or threatens an organization’s objectives. The value chain analysis of the Stilsim company indicates that the company is surrounded by a number of threats and opportunities that are likely to affect the productivity and hence the future of the organization.

StilSim Company has numerous opportunities to better its services, however, the number of threats facing the company far out way the current opportunities available for the company survive the harsh