An internal organizational analysis evaluates all relevant factors in an organization in order to determine its strengths and weaknesses. Some of the areas that most businesses should analyze include the following:
- Financial position: The financial position of a business plays a crucial role in determining what it can or cannot do in the future.
- Product position: For a business to be successful, it must be acutely aware of its product position in the marketplace.
- Marketing capability: Closely allied with an organization's product position is its marketing capability (i.e., its ability to deliver the right product at the right time at the right price).
- Research and development capability: Every organization must be concerned about its ability to develop new products.
- Organizational structure: Organizational structure can either help or hinder an organization in achieving its objectives.
- Human resources: All the activities of an organization are significantly influenced by the quality and quantity of its human resources.
- Condition of facilities and equipment: The condition of an organization's facilities and equipment can either enhance or hinder its competitiveness.
- Past objectives and strategies: In assessing its internal environment, every business should attempt to explicitly describe its past objectives and strategies.