Internal and External Factors Flashcards
Describe Interal Factors
Influence within the control of the organisation which will affect how it operates.
Identify all Internal Factors
Availability of finance, Human resources (employees and management) and current technology.
Explain the influence that availability of finance has on a business
If a business has lot of finance available then this means it will be able to hire the most qualified employees.
Explain the influence that current technology has on a business
If an organisation has up-to-date technology/ICT then this means it will be able to produce products to the highest quality.
Explain the influences that human resources have on the business
If employees are highly skilled then this means they may be able to produce a higher quality product.
Explain the impact that political factors have on a business
If the government increases the National Minimum Wage then this means that the businesses wage bill may increase.
Explain the impact that Economic factors have on a business
If unemployment levels rise, people will have less money available to spend in your business.
Explain the impact that Social factors have on a business
If there are changes in consumer tastes then this means it could lead to a decreased demand for your product/service
Explain the impact that Technological factors have on a business
If there is an increased use of e-commerce by business competitors the effect of this may lead an organisation to decide to launch its own website with selling capability
Explain the impact that Environmental factors have on a business
If there is pressure from government to meet pollution targets then effect of this could lead businesses to invest in new greener technology in production.
Explain the impact that Competitive factors have on a business
If a competitor lowers its prices for a similar product then this means that a business will have to lower its prices too.
