If Your Business Has Too Much Internal Focus, You Could Be Missing Out

If Your Business Has Too Much Internal Focus, You Could Be Missing Out


Vivek Sood




January 8, 2019

It’s no surprise that customers hate companies with too much internal focus.  As organizations free up their inter-departmental planning from rigidities, the communications start to bloom.  Efficiency improves considerable and everybody starts running together, faster.  However, a higher set of problems emerge due to lack of external focus – on suppliers, customers, and end-consumers. Many times everybody inside the organization is running together, faster, but in the wrong direction.

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Vivek Sood

Our Quick Notes On Five Flows Of Supply Chain Management

Part of our new “Quick Notes” series – this report answers your most pertinent questions of the topic.

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  • When we talk about what could be missing out in your business is Profit margins are easily destroyed when companies focus on internal issues versus the external conditions that affect customers. Revenue comes from the outside, from customers buying products or services, not from implementing new technology, re‐engineering business processes or building great teams. Focusing on external forces increases the bottom line. In fact, by shifting to an external focus, companies can often increase profits from 5 to 10 percent

  • My company is doing good but as per my analysis (I’m market analyzer) it won’t perform any longer due to slow innovative productivity or maybe not innovative. I think we suffer by slow Innovation. ):

  • Time it can take a long time to achieve growth; some owners aren’t prepared to wait long. Potential financial input and capital investment can be lost, this affects the outflows on the businesses cash flow, consider short term cash flow vs. long term potential benefits. Impact of failure could the business financially, damage their reputation and affect their opportunity cost, the cost of the choice you don’t make.

  • Short but thought provoking blog Vivek but I think internal growth is positive in many aspects. Focusing on your internal company growth allows your business to increase its revenue without relying on investors to help you along the way. This may be a harder and longer road to travel, but your company will be stronger as a result, something you can be proud of for your efforts.

  • Internal growth is when a business expands its own operations by relying on developing its own internal resources and capabilities. This can for example be done by assessing a company’s core competencies and by determining and exploiting the strength of its current resources with the aid of effective strategies Moreover, companies can decide to grow internally by expanding current operations and businesses or by starting new businesses from scratch.

  • Internal organic growth strategies improve the company’s knowledge through direct involvement in a new market or technology, thus providing deeper first-hand knowledge that is likely to be internalized in the company. But larger businesses tend to be more complex than smaller businesses. There may be shortage of cash, you may need to borrow money to meet expansion costs, buy new premises or equipment.

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