solved reply to Martin Introduction The process of identifying the internal

reply to Martin
Introduction
The process of identifying the internal environment is crucial for the operation within the business environment. An evaluation of internal capabilities is needed for the successful operation of an organization in it’s competitive atmosphere. This paper will identify some methods in assessing the internal environment, the sources of power, and the decision model that is crucial for understanding the internal environment.
Process
The process of assessing the internal environment begins with identifying the organization’s strengths and weaknesses (Gamble, Peteraf, & Thompson, 2021). This task is usually performed by top and middle managers who invoke an assessment of the internal capabilities of the organization. Usually, organizations assess their internal capabilities if the need for competitive advantage has stagnated and innovation is lacking (Kuratko, Hornsby, & Covin, 2014).
Next, employee empowerment through increased autonomy and direction satisfies the organizational demand for additional innovation and corporate entrepreneurship. This process is initiated by top management and fulfills corporate entrepreneurial endeavours which leads to increased innovation by employees without the need for a corporate research & development department (Ketata, Sofka, & Grimpe. 2015). Innovation by employees may be more crucial due to their increased interaction with their primary customers, either business to business or business to consumer.
This section addressed innovation on behalf of the organization when conducting an internal assessment of the organizational environment. The rationale of assessing innovation is that innovation within organizations allows for the organization to gain and sustain competitive advantages within the marketplace. If an organization ceases to be innovative, they will likely lose their competitive advantage and thus b e stagnant in the marketplace and thus lose profitability.
Strategic Thinking
A source of power in assessing the internal environment within an organization is to improve internally performed value chain activities. This can be done with top management’s support and an assessment of the processes that make up the entire value chain within an organization. There are many methods that managers may use to improve strategic thinking within an organization. Implementing the use of best practices, as outlined by industry standards, may be of significant importance to managers. These would increase the cost-effectiveness by reducing the costs of high-cost activities.
Next, eliminating cost producing activities may substantially benefit organizations that are hemorrhaging cash. Elimination or reassignment of high cost activities would substantially benefit organizations particularly those who desire to be competitive within highly competitive industries. Outsourcing high cost activities, such as customer service, to other organizations may be of significant advantages to many organizations who try to cut costs to remain competitive.
In assessing the strengths and weaknesses of organizations, many of these processes and decisions will be identified and those strengths may be capitalized upon and the weaknesses improved. It’s up to managers to listen to employees and identify those costs that are substantially ineffective or considered a weakness within the organization.
Decision Model
One of the single most critical tools in developing an understanding of oneself is the SWOT analysis. A SWOT allows organizations to identify internal strengths and weaknesses as well as external threats and opportunities. For the purpose of this paper, only the internal strengths and weaknesses will be looked upon. Strengths are what an organization does well. Weaknesses are what an organization does not perform well. Therefore, it’s imperative that an organization capitalize upon what they perform well and are aware of what they do not. In this awareness organizations may either choose to improve upon those weaknesses or continue to allow for them to be weaknesses for the sake of continuously capitalizing on strengths (Krogerus, Tschappeler, Piening, & Earnhart, 2017).
Conclusion
Assessment of the organztions’ internal environment is a crucial component of maintaining a competitive advantage within an industry. Understanding what an organization performs well and what they are sorely lacking is vital to improving upon existing processes and cutting the losses of those processes that are losing. Innovation is also a crucial component of the internal process insofar that innovation helps to gain and maintain a competitive advantage.

Annotated Bibliography
Ketata, I., Sofka, W., & Grimpe, C. (2015). The role of internal capabilities and firms’ environment for sustainable innovation: Evidence for germany. R & D Management, 45(1), 60-75. https://doi.org/10.1111/radm.12052
Ketata, Sofka, & Grimpke discuss how the firm’s internal capabilities are suitable for innovation. The authors particularly look at firms located in Germany, which has been an industrial giant in Europe for many years. Ketata, Sofka, & Grimpke identify that investment in research & development is something many organizations pursue and yet remain less innovative than entrepreneurial endeavours. The authors then research the investment in the employees of each firm and conclude that investment in employees is more valuable for sustainable innovation than investment in research & development. Ketata, Sofka & Grimpke conclude that innovation may be fostered and competitive advantage may be gained and sustained through greater employee empowerment and nurturing.
This paper was published in R&D Management which has an impact factor just south of 3, which is not as powerful as other journals, but nonetheless still a positive impact factor for a business journal. The authors are from Georgia State University and Copenhagen Business School, Denmark and are therefore considered to be experts in their respective areas. This study will fit into the overall paper on internal evaluation of the environment because of the conclusions drawn with regard to investing in the existing employees and how innovation may be fostered and nurtured through doing so. While innovation is the scope of this paper, it adds to the entrepreneurial spirit that the United States is known for and helps to better identify means for corporations to become innovative.
Kuratko, D. F., Hornsby, J. S., & Covin, J. G. (2014). Diagnosing a firm’s internal environment for corporate entrepreneurship. Business Horizons, 57(1), 37-47. https://doi.org/10.1016/j.bushor.2013.08.009
Kuratko, Hornsby, & Covin discuss how a firm’s internal environment may be a hotbed for corporate entrepreneurship, or innovation. The authors identify the need for corporate entrepreneurship as a fundamental component for corporate survival and thrivability in the 21st century. Kuratko, Hornsby, & Covin identify five key components necessary for successful corporate entrepreneurship which include top management support, work direction & autonomy, rewards & reinforcement, time availability, and organizational boundaries. The authors conclude that each of these components are necessary for entrepreneurial activities to take place within the greater organization based upon the feedback gained from their research within significantly innovative companies.
This paper is published in Business Horizons which has an impact factor of 3.44, indicating that it is a reputable journal within the business research. The authors are part of the schools of business and management at Indiana University and the University of Missouri, which both have reputable business programs in the United States. Because they are faculty at reputable university business programs they are likely prominent researchers in the field of business. This study will fit into the overall paper insofar that it provides conclusions that allow for organizations to be more innovative, particularly after the entrepreneurship phase of their life cycles. When assessing the internal environment, it’s crucial for our understanding of the atmosphere which fosters creativity and innovation to continue to push the boundaries of our consumer and business markets.
References
Gamble, J. E., Peteraf, M. A., & Thompson, A. A. (2021). Essentials of strategic management: The quest for competitive advantage. New York, NY: McGraw-Hill.
Ketata, I., Sofka, W., & Grimpe, C. (2015). The role of internal capabilities and firms’ environment for sustainable innovation: Evidence for germany. R & D Management, 45(1), 60-75. https://doi.org/10.1111/radm.12052
Krogerus, M., Tschappeler, R., Piening, J., & Earnhart, P. (2017). The decision book: 50 models for strategic thinking. New York, United States: W.W. Norton &.
Kuratko, D. F., Hornsby, J. S., & Covin, J. G. (2014). Diagnosing a firm’s internal environment for corporate entrepreneurship. Business Horizons, 57(1), 37-47. https://doi.org/10.1016/j.bushor.2013.08.009