Paper

External and Internal Environments

Student’s Name

Institution

External and Internal Environments

A typical business organization exists in an environment affected by both internal and external factors. Factors present in the internal environment can be influenced by the business directly. External factors exist outside the business, and the business cannot single-handedly affect them; instead, it should adjust its strategies to conform to the external environment. This assignment looks at several internal and external factors and how they affect a business.

General Environment

BSNL is a telecommunication company based in New Delhi, India (BSNL, 2022). The company is affected by different factors, both internally and externally. The following are the segments in the general environment that have a significant impact on the company:

1. Technology

2. Social

Technology

Being a telecommunications company, technology is one of the most significant segments of the environment that affect BSNL. Most of the company's processes and procedures are technological, which implies that technology significantly impacts the company and its operations. Keeping in mind that most of the processes in the company are computerized, technology is at the core of the company's performance. The company uses computers and related devices to provide for its customers and clients. Technology is not only used inside the company but outside as well. The company has to keep up with advancements in technology to make sure it is at par with the trending inventions in the sector. Being technologically advanced enables the company to be more competitive in the market. Businesses that operate in technology-based industries must quickly adjust their strategies to adapt to the new environment. This makes them more effective and efficient in service delivery.

Social

BSNL operates in the telecommunication industry, which is one of the most interactive industries in business (BSNL, 2022). This implies a high level of socialization, making it necessary for the business to invest in the social aspect of the business. The company interacts with millions of customers every single day. Communication is about interaction and social life. The social aspect is a critical segment in the operation of BSNL because it determines how the company interacts with its market.

Businesses need to invest in the social aspect as this enables them to effectively interact with their markets and understand how to serve their customers so that they are satisfied. For this reason, the company has invested in training its customer executives about the importance of adequate socialization. This has enabled the company to build a positive image in the market and attract and retain customers. The company has also invested in corporate social responsibility by participating in community services.

Five Forces of Competition

Every significant business is faced with at least five forces of competition (Michael, 2020). Each force has a different impact on the business, depending on the environment in which it operates and how it handles its challenges. In the case of BSNL, the two major competition forces are competitive rivalry and the threat of new entry.

Competitive Rivalry

This is a force of competition concerned with the rivalry between businesses that already exist. Such businesses offer similar products and services in the same area, which creates some form of friction between them, resulting in competitive rivalry. BSNL faces competition from other companies such as MTNL and Airtel. The company has addressed the force of competitive rivalry by providing world-class services to its clients. The company provides reliable services at affordable rates to ensure it stays ahead of the competition.

The Threat of New Entry

Telecommunication is a lucrative business in India, given the country's large population. This implies a threat of new businesses entering the industry and making competition even stiffer for the existing ones. BSNL understands this threat and has addressed it by providing its customers with the best products and services. This makes it difficult to compete against the company because it has attracted and retained many customers. In a competitive environment, businesses need to effectively deliver services so that they remain relevant in the industry (Craig & Campbell, 2012).

Future Improvements

As far as the competitive rivalry is concerned, BSNL can improve by understanding the strategies that its competitors are putting in place. The company should also research and understand the market about what exactly is needed. This will put the company in the right position to implement new strategies that will make it more competitive. This strategy still applies in the force of the threat of new entry. It is essential to conduct market research and use the feedback to make new strategies that will make a business more competitive.

Greatest External Threat

The greatest external threat is competition. BSNL faces stiff competition from companies such as MTNL and Airtel (BSNL, 2022). The company understands that this is significant to its performance. It is focused on extensive market research to understand the market's specific needs. This will enable it to develop new strategies that will address the threat and make the company more competitive.

Greatest Opportunity

BSNL has the opportunity to expand its coverage. BSNL has 24 million users, while the population of India is more than 1.3 billion people. This implies that the company can expand and cover a more significant percentage of the market. It needs to customize its services to meet the market's needs (Michael, 2020). This will be significant in growth.

Strengths and Weaknesses

The greatest strength of BSNL is effective management. The company has a competitive team of management officials with experience and expertise in different fields. This has enabled the company to build a strong team that has played a key role in its success in the industry. The top management provides servant leadership that has motivated the rest of the employees to do their best (Craig & Campbell, 2012). The greatest weakness of BSNL is poor marketing strategies. The company's marketing team is not as effective as it should be, leading to a decrease in the market share. This issue should be addressed through marketing seminars and benchmarking to enable the marketing team to learn effective strategies.

Strategy

The best strategy to deal with the threat of competition is by studying the market and providing customized services to meet the needs of customers. As far as fixing the weakness of poor marketing is concerned, the company should train its marketing executives on the best approaches to marketing so that the company can increase its market share.

Resources, Capabilities, and Core Competencies

BSNL has sufficient financial and human resources. In 2020/21, the company recorded revenue of over USD 2.5 billion (BSNL, 2022). This solid financial muscle can enable the company to invest more. With a workforce of 64,000 employees, the company has sufficient human resources to run its operations. Concerning its resources, it is understood that BSNL can expand its services and operations to be a leader in the market.

One of the core competencies of BSNL is teamwork. The company believes in joint efforts. It encourages employees to work together in teams, which helps them grow individually and collectively. Teamwork is effective as it boosts productivity (Michael, 2020).

Sources

BSNL. 2022. About BSNL. Retrieved from https://www.BSNL.co.in/opencms/BSNL/BSNL/about_us/company/about_BSNL.html

Michael A. Hitt. 2020. Strategic Management: Concepts and Cases: Competitiveness and Globalization 13th ed. Cengage Learning.

Tom Craig & David Campbell. 2012. Organizations and Business Environment. Routledge.