Chapter 1.5 - The internal environment of a business

Question 1

What elements are in the internal environment?

Answer 1

Employees, managers, management style, corporate culture and company policies.

Question 2

Describe employees.

Answer 2

Employees are the most important resource for a business. People who work for the business.

Question 3

Describe managers.

Answer 3

Managers are the people who direct and make decisions in a business. Their skills affect the business and determine whether the business objectives are achieved.

Question 4

Describe management style.

Answer 4

Management style is the way the owners/directors run the business. Two different management styles are consultative where the manager consults the staff on decisions and autocratic where the manger makes the decision by him/herself.

Question 5

Describe corporate culture.

Answer 5

A corporate culture is where a businesses beliefs, values and expectations combine to give a business it’s personality. Positive or negative.

Question 6

Describe company policies.

Answer 6

The company policies are the guidelines that a business follows. Setting out policies means that everyone is treated equally and employees enjoy work.

Question 7

What is the internal environment?

Answer 7

The internal environment is made up of elements created by the people within the business. They are things that the business has control over.