Internal & External Factors

Question 1

DESCRIBE INTERNAL FACTORS

Answer 1

Influences within the control of the organisation which will affect how it operates

Question 2

IDENTIFY ALL INTERNAL FACTORS

Answer 2

Availability of finance, human resources (Employees and management), Current technology

Question 3

EXPLAIN THE INFLUENCE THAT AVAILABILITY OF FINANCE HAS ON A BUSINESS

Answer 3

If a business has a lot of finance available, then this means it will be able to hire the most qualified employees

Question 4

EXPLAIN THE INFLUENCE THAT HUMAN RESOURCES MAY HAVE ON A BUSINESS

Answer 4

If employees are highly skilled then this means they may be able to produce higher quality products

Question 5

EXPLAIN THE INFLUENCE CURRENT TECHNOLOGY MAY HAS ON A BUSINESS

Answer 5

If an organisation has up-to-date technology/ICT it will be able to produce products to the highest specification

Question 6

EXPLAIN THE IMPACT THAT POLITICAL FACTORS MAY HAVE ON A BUSINESS

Answer 6

If the government increases the national minimum wage this will lead to business’ wage bill incoming

Question 7

EXPLAIN THE IMPACT THAT ECONOMIC FACTORS MAY HAVE ON A BUSINESS

Answer 7

If Unemployment levels rise, people will have less money available to spend in your business

Question 8

EXPLAIN THE IMPACT THAT SOCIAL FACTORS MAY HAVE ON A BUSINESS

Answer 8

If consumer tastes change over time could it lead to decreased demand for your product/service

Question 9

EXPLAIN THE IMPACT THAT TECHOLOGICFAL FACTORS MAY HAVE ON A BUSINESS

Answer 9

If Business competitors increase a use of e-commerce it may lead an organisation to decide to launch its own website with selling capability

Question 10

EXPLAIN THE IMPACT THAT ENVIROMENTAL FACTORS MAY HAVE ON A BUSINESS

Answer 10

pressure from the government to meet pollution targets could lead businesses to invest in ne greener technology in production

Question 11

EXPLAIN THE IMPACT THAT COMPETITIVE FACTORS MAY HAVE ON A BUSINESS