Internal Environmental forces:

i) The personnel

Change in work attitude and commitment - ways to improve relationship, recruitment techniques.

This refers to changes occurring in workers attitudes, values and levels of motivation. An organization may for example have inappropriate/ineffective people in key posts, employees unwilling to accept change introduced, key individuals using their power against the corporate interest etc.

ii) Organisational structure

Existing structure may not be meeting pressure of implementation of a strategy.

There may be too many organization layers leading to stifling of managerial initiative and slow decision making process. The head office may be exercising too much power over branches and other operational decisions. (i.e. decentralisational).

iii) Systems

There may be inadequate procedures for tracking progress of organizational activities eg  ineffective control systems.

iv) Technology

Changes may be introduce in the organizations manufacturing system because the existing technology may be obsolete.

v) Financial

The company may be facing cash flow problems or increase in the cost of capital budgets      hence the need for a change on the budgeting activities of the company.

vi) Marketing and sales

Marketing research may fail to give early notice of key development in consumer tastes/competitors behaviours. Sales personnel may also fail to meet agreed targets.

vii) Products/services

This is where new products are introduced which would require different production, marketing and accounting methods.