Internal and External factors Flashcards
Name the internal factors
Finance Staff Management Information Technology
How can the internal factor FINANCE effect a business?
Finance is crucial
Lack of money means…
Cost cutting
Staff redundancies
Closing branches of the business
How can the external factor POLITICAL effect a business?
The government can effect the business by changing the corporation tax
Can introduce laws that can effect the business
How can the external factor ECONOMIC effect a business?
Unemployment is high consumers will have less income
Result in a loss of sales
Businesses might have to cut prices to attract customers
How can the external factor SOCIAL effect a business?
Population is getting larger
Business must produce goods and services relevant to the needs of a population
How can the external factor TECHNOLOGICAL effect a business?
Business must keep up with new and advancing technology
They must become involved with the e-commerce
Failure to keep up with technology will lead to a fall in sales and profits
What can the external factor ENVIRONMENTAL impact on the business?
Increasing pressure on firms to become environmentally friendly
Businesses can be seriously disrupted by storms and freak weather conditions
How can the internal factor STAFF impact a business?
Expert and capable staff will be more productive
Help the business to achieve more
How can the internal factor MANAGEMENT effect a business?
Strong and capable management team will make good decisions
Lead the business to success
How can the internal factor INFORMATION effect a business?
Businesses carry out market research to obtain accurate information about certain customers
How can the internal factor TECHNOLOGY effect a business?
Use if ICT and robots means that goods or services can be produced more efficiently
More cost effectively
Name the external factors
Political Economic Social Technological Environmental Competitive