As the name suggests, “internal” business environment refers to internal factors and resources that affect the running of the business. This primarily includes the workforce where the employees play a vital role in affecting company’s performance. If a company has well trained or motivated employees, that company is likely to get good output from them. However, if the same company recruits unmotivated staff who do not perform well or dig in their heels when a new plan arrived, this will affect that company’s production levels and ultimately hinder its profitability by causing a turnover. Another factor to consider is all the capabilities that a company possesses.
Internal factors can be a strong effect on how well the company goes out to meet their goals which could be strengths if they have a high impact on how the business performs. It could also be a weakness if it has a dangerous effect on the business if no clients come back to use the products or services again in the future. There are four main types of resources available to a business, these include; • Human Resources •
Executive Summary Business environment is the sum total of all external and internal factors that influence a business. You should keep in mind that external factors and internal factors can influence each other and work together to affect a business. For example, a health and safety regulation is an external factor that influences the internal environment of business operations. Additionally, some external factors are beyond your control. These factors are often called external constraints.
The economic factor depends on outside control of the business, but it can affect the performance and marketing of the organisation. The main factors which mainly influence the economic balance of an organisation are political, economic, social technological, environmental and legislative factors. On an international front economic aspect is an essential interference in the performance of Tesco. Apart from the political stability of the region, factors also involve acts of legislation and tax rates. It is a major point of concern for the organisation, therefore it is essential to be aware of the changes in the policies.
Question 4 a. Assess the factors within the business environment that influence upon operational management and decision-making by leaders and managers. The business environment will get affected by a numbers of factors which affect the operational of the business and part of the decision making in the organization. The various factors are suppliers, customers, company, marketing intermediaries, public and competitors. Suppliers Suppliers can be in individuals or in commercial organization. They can combine together to provide resources that needed by a company or an organization.
1.1 It is very true that for any organization to be successful or for its survival in this very difficult industry is for the environment that it is operating to be fully developed to guarantee success. There are various definitions to ‘the business environment’. Where we can start to define what a business environment is, is to first of all define what a business is. Business can be defined as an operation which all the different activities connected with trade, banking, production, finance, advertising, insurance, packaging, energy and many others. The second part of being able to define what a business environment is to also define what an environment is as well.
The changes in the organization’s internal and external environment that impact on Human Resource plans and strategies Business in today’s modern world is operating in highly dynamic environment consisting of various internal and external factors. Business therefore are required to consistently evaluate themselves both internally and externally as an attempt to survive, grow and to maintain a competitive edge. The business environment has three key perspectives which involves the internal environment, and external environment which further comprises of micro and macro environmental factors according to Kotler et al (2009), Principles of Marketing. The internal environment includes factors such as organizational direction, human resource,
It indicated human organization is different from other organization 5. Enduring quality: organizational climate is a relatively enduring quality of the internal environment which is experienced by the members of the organization. It develops over a long period of time 6. Multi dimensional: organizational climate has several dimensions such as authority structure, individual autonomy, leader ship style, leadership patter, conflict handling, cooperation, etc. COMPONENTS OF HRD
It does require a good communications and relationship between many stakeholders within the institutions or company such as the shareholders, management, customers, suppliers, investors, financiers, government and the community. The confidence of investors in the companies is increases because of good corporate governance and it gives impact positive on overall business environment. The main elements that want to be emphasized within the establishment of corporate governance in company are transparency, trustworthy, moral and ethical environment. These good values are important within the organization of the companies in managing the business operation. Besides, good corporate governance helps to prevent fraud, corporate scandals and misappropriation of money in organizations.
As the modern world is becoming a big cluster of various businesses, it is necessary to understand basic principles on which such businesses are based. For better understanding, it is important to know that there are external as well as internal factors affecting each business, its structure and success. Some of the external factors are a structure of competition in the particular market, trade restrictions, consumers’ interest, and a company’s market strategy. On the other hand, basic internal rules that affect each business are internal hierarchy and recruitment strategy. In order to understand what each factor presents and how it affects a business, it is best to look at real life examples.