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Internal Environment Capabilities and Resources Discussion

Internal Environment Capabilities and Resources Discussion

A company’s internal environment affects the development of its corporate strategy since it is composed of factors from within the business that can influence the success or failure of the company. Internal environmental factors are within the company’s control; therefore, they can be shaped to support the development of the company’s corporate strategy (Wahab et al., 2019). Examples of crucial internal environment aspects that can influence the corporate strategy include employees, corporate culture, and management. Notably, this discussion assesses how these internal environmental aspects influence the company’s corporate strategy at the product life cycle, organizational structure, and personnel levels.

Regarding the product life cycle, internal environmental factors can improve the cycle. For instance, when employees are motivated through incentives, they work hard to achieve better output for the company. As a result, the product life cycle is improved. However, the opposite is true, which means that when employees are poorly motivated, the product life cycle will be influenced negatively. Regarding personnel, the organization’s corporate strategy is formulated by the personnel hired. Thus, high-quality personnel will reflect a high-quality corporate strategy. Therefore, an organization should obtain the right personnel to formulate and implement its corporate strategy and enhance its market competitiveness (Taouab & Issor, 2019). Finally, the aspect of organizational structure should be accorded sufficient consideration to achieve a successful corporate strategy. The organizational structure gives an insight into an organization’s power hierarchy and communication levels. Thus, an organizational structure that is well-defined and presented makes it easier for communication to take place among employees and the management. Notably, this makes it possible to communicate the organization’s corporate strategy across all departments with clarity. On the other hand, a poor organizational structure will make it impossible to communicate the organization’s corporate strategy to all employees, leading to failure.


Taouab, O., & Issor, Z. (2019). Firm performance: Definition and measurement models. European Scientific Journal15(1), 93-106.

Wahab, M. H. A. A. A., Ismail, M., & Muhayiddin, M. N. (2019). The effect of internal environmental factors on operational excellence of manufacturing industry: a pilot study. International Journal of Academic Research in Business and Social Sciences9(2), 1087-1099.


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This week focuses on internal capabilities and resources.

Respond to the following in a minimum of 175 words:

Internal Environment Capabilities and Resources Discussion

Internal Environment Capabilities and Resources Discussion

Discuss how a company’s internal environment might affect the development of the corporate strategy.
Include product life cycle, personnel, and organizational structure in your discussion as these components must receive consideration for success of any strategy.

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