- Created by: karengovig
- Created on: 12-01-18 23:26
There are two business environments; internal and external.
- The Internal Environment is within the business.
- The External Environment is outside the business.
Internal Factors are factors within the business that impact on its success. Due to them being within the business, the business has a degree of control over them. They can affect whether the business will achieve its objectives.
Factors of the Internal Environment:
Finance = If able to access funding, the business can invest in new assets, research and develop the business.
Staffing = Success depends on a motivated, skilled workforce who can grow the business. Experienced staff are more likely to make effective decisions. Businesses need a stable workforce i.e a low staff turnover.
Information = Having information that is up-to-date/accurate means a business is more likely to succeed.
ICT and Technology = The use of ICT gives a competitive edge.
Corporate Culture = A strong culture that staff can embrace will result in motivated staff and a successful business.
Negative Internal Factors can be overcome by:
- Staff training
- Strict budgetary control
- Arranging bank loans
- Motivating employees
Corporate Culture is everything to do with the business i.e it’s values, written policies, procedures…