External and Internal Information:
Definition, Explanation and Difference:
The information generated by an organization can be valuable to many people. User of an organization's information can be external or internal.
a. Types of External Information:
1. Market Competition:
Is the marketing segment increased or decreased?
Where our products/services should be positioned?
What are our competitors doing? Etc
2. Demographic (Population) Trends:
How is the population structure changing?
Is the age profile of our customers changing? ETC.
3. Economic Condition:
What are the forecasts for growth, inflation, GDP?
What will be effect of the European community single market? Etc.
4. Industrial Structure:
Is there a process of rationalization taking place?
What will be the consequences of privatization?
How many new firms are entering in the industry? Etc.
5. Social factors:
What will be the effect of the changing family patterns?
What is the role of women in society?
What changes are expected in attitudes towards consumption and saving? Etc.
6. Political Factors:
What will be the effect of political decision?
Is there likely to be political instability?
7. Technological Changes:
Can the organization adapt to take advantage of new technology?
How will it affect the organization?
b. Type of Internal Information:
1. Marketing and Sales Information:
On performance, revenues, market shares, distribution channels etc.
2. Production and Operational information:
On assets, capacities, lead time, quality, standard, etc.
3. Financial Information:
On profits, costs, margins, cash flow, investments, etc.
4. Research and Development Information:
on new products and development copyrights, knowledge base, etc.
Typical Source of Information:
- Published report
- Government statistics
- Scientific and technical abstracts
- Company reports
- Commercial data banks
- Trade associations
- Special investigation
- Social contact of all types
- Media coverage
- Holiday trips at home and aboard
- All outputs of the organization's MIS including control and monitoring reports
- Forecasting and enquiry systems
- Investigation reports
- organization charts
- Video displays
- Social contacts
- Telephone conversations
- Personal records keeping