Accounting technicians scheme west africa
Download 3.37 Mb. View original pdf
|
- Navigate this page:
- B.3.3 Internal Environment
| (vii) Legal/Public policy environment The legal environment of business consists of the laws, regulations and procedures of a country which business enterprises are expected to comply within the course of their operations. To some extent, these laws may facilitate successful business conduct as well as constitute major handicaps to successful performance. However, companies willing to do business in any country are required to obtain licences from relevant government agencies. Furthermore, in carrying out their operations, business enterprises are required bylaw to pay personal and company income taxes, value added tax, capital gains tax, education tax, import duties, excise duties, etc. there are also laws that regulate the contract of employment, the relationship between employers and labour unions, the minimum age a person must obtain before he/she can be lawfully employed, employee compensation, etc. 33 In addition, these business organisations especially in the areas of foods, drugs, cosmetics, bottled water, chemicals, etc. are to be registered with the National Agency for Food and Drugs Administration and Control (NAFDAC). Thus, production of rational, well-intentioned policies, laws and regulations, which are expected to maintain, provide, secure and accelerate social and economic development of the society is a task that public policy is designed to achieve. B.3.3 Internal Environment Yalokwu (2002) noted that internal environment of an organisation includes all the elements and systems that exist within the organisation and over which the organisation has more direct control. He is of the view that management must analyse these factors carefully in order to determine their strengths and weakness so that appropriate steps can betaken to reduce any weaknesses and enhance the strengths. The understanding of the internal environment is paramount to organisational effectiveness and efficiency. No wonder, Dess and Miller (1993) affirmed that the most effective strategies to be adopted are based on a thorough understanding of an organisation’s internal environment. To be effective in evaluating, formulating, and implementing strategy, operating managers must be able to analyse their organisation in details both in breadth and depth. An analysis of the internal environment will tell the analyst what the organisation is capable of doing in view of its resource profile. To exploit opportunities for organisational effectiveness and minimise threats which are products of external environment, managers must carefully analyse a firm’s internal resource profile. After noting the critical importance of the understanding of the internal environment, it is apposite at this juncture, to review the constituents of the internal environment. Download 3.37 Mb. Share with your friends:
|