Answer to Question #227358 in Management for Busani

Question

You are a public relations manager at an oil company in the province of KwaZulu-Natal. Explain to the board of directors the difference between internal and external environments and why these factors are important when determining a communication strategy. (3)

Answer 1

Internal business environment and external business environment 

The oil company is a business organization that has an internal and external environment.

Differences

 The internal environment entails the factors present within an organization (Surbhi, 2020). The members, forces, conditions, and events fall under this category, and they hold enormous power in orienting the direction of oil company decisions. In contrast, the external environment entails all the outside forces influencing the oil company's actions, decisions, and operations. 

Secondly, the management can regulate the internal environment factors as they fall under the company's influence (Surbhi,2020). This includes internal resources and assets. In contrast, external factors cannot be controlled by the management.

The third difference is that Internal factors can work to impart strength to a company or impart weakness to the oil company. The direction of influence depends on the management in control. Conversely, external factors pose threats or open up opportunities to an organization.

Finally, Changes in internal factors affect the subject organization only. An example is a change in the board of directors. Conversely, changes in external environmental factors influence the whole paradigm, internally and externally (Sherman, 2018)

How it affects communication strategy

A clear understanding of internal and external factors enables the board of directors to diversify the methods of communication. If they communicate ideas within the company, they can use fax, company emails, company notice boards, and direct messages to concerned personnel. On the other hand, they can communicate to external factors through media, newspapers, and social media platforms.

 

 

 

References

Sherman, F (2019) What are internal and external factors that affect business. Chron. <span lang="EN-US" style="font-size:12.0pt;line-height:107%;font-family:&quot;Times New Roman&quot;,serif; mso-ansi-language:EN-US">https://smallbusiness.chron.com/internal-external-environmental-factors-affect-business-69474.html</span>

Surbhi, S (2020) The difference between internal and external environment. Key difference <span lang="EN-US" style="font-size:12.0pt;line-height:107%;font-family:&quot;Times New Roman&quot;,serif; mso-ansi-language:EN-US">https://keydifferences.com/difference-between-internal-and-external-environment.html</span>