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.