Relationship between Strategy, Organization and Environment

Strategy, organization and environment is very related terms, in the absence of one the goal achievement of the organization becomes impossible. Organizational cannot able to direct its all activities towards goal achievement without the proper strategy and without the proper analysis of environment no organization can able to formulate its strategy for the smooth running of the organization. A business firm’s strategy can be seen as an optimal match between the environmental opportunities and threat and organizational strength and weaknesses. This matching expresses itself in the form of a definition of organizational goals and objectives, and its plans for achieving them. This process or exercise of optimal matching between environmental opportunities and threats, and organizational strengths and weaknesses for developing appropriate courses of action and this process is known as SWOT analysis. An analysis of the internal forces within the control of the firm helps in finding answers to the following questions: where are we now and where are we headed if we maintain the same course? What are our strengths and weaknesses? What are our market opportunities? And so on.