Performing an internal environmental analysis helps a company identify the strengths to build on and the weaknesses to overcome when formulating strategies. Included in this strategy is an assessment of the functional areas of the business. To effectively and efficiently manage strategy, a company must plan, execute and coordinate the functions of accounting, finance, human resource management, management, research and development, production and operations, and marketing.

Demonstrate a thorough understanding of how each functional area works and how the functions are interdependent.