influences in the business environment: internal influences Flashcards
What is the internal environment?
Internal influences includes those factors over which the business has some degree of control, such as products, location, resources, management and business culture..
what are the 5 internal influences?
Product Location Management Resources Business culture
What are product influences?
Product choice influences internal structures based on:
The type of goods and services produced- e.g are the goods physically large, do they require many raw material inputs. The range of goods produced also affect operations.
Products will be influenced by the type of business (e.g. service, manufacturer)
The size of the business will influence types of products produced.
What are location influences?
Location Visibility Proximity to support services Cost Proximity to suppliers Proximity to customers
What are management influences?
management influences are the influence of managers over the running of a business. management of a business is what creates it’s structure and business culture and ultimately controls whether the business os organised and successful or not.
What are resource influences and how many are there?
The four main resources available to a business are:
Human resources. These are the employees of the business and are generally its most important asset.
Information resources. These resources include the knowledge and data required by the business such as market research, sales reports, economic forecasts, technical material and legal advice.
Physical resources include equipment, machinery, buildings and raw materials.
Financial resources are the funds the business uses to meet its obligations to various creditors.
What is business culture and what are the elements that make it up?
Business culture is the belief and behaviours that determine how a company’s employees and management handle and interact outside business transactions. A business culture normally consists of four essential elements:
values, symbols, rituals rights and celebrations and heroes.
What is business culture values?
These are the business’s basic beliefs, shared among its employees. Business values can include honesty, hard work, teamwork, quality customer service, employee participation and innovation.
What is business culture symbols?
These consist of events or objects that are used to represent something the business believes to be important. It is a case of ‘actions speaking louder than words’. For some businesses, competitive sports are a key feature of the business’s culture. Other businesses have encouraged employee development and loyalty through the use of training and development programs.
What is business rituals, rights and celebrations?
These are the routine behaviour patterns in a business’s everyday life. Regular social gatherings can be held to help develop a sense of belonging among employees who normally work in small teams during the week.
What is business culture heroes?
Heroes are the business’s successful employees who reflect its values and, therefore, act as an example for others
