Internal Factors

Question 1

What are the 4 internal factors?

Answer 1

Finance
Staff
Technology
Corporate Culture

Question 2

Explain examples for finance

Answer 2

If a business does not have a lot of finance available this might mean that the business cannot take the actions that it wishes to take e.g. to develop new products.

If a business does not have a lot of finance available this may lead to having to cut costs by making staff redundant.

Question 3

Explain examples for staff

Answer 3

If employees are well trained this means they will fulfil their role effectively and be an asset to the organisation.

If managers do not have enough experience/expertise this can lead to low staff morale and a drop in productivity.

Question 4

Explain examples for technology

Answer 4

If technology breaks down (e.g. machines in a factory breaking) this means production will come to a halt.

If the business does not have the most up-to-date technology (e.g. not selling online) then this means the business may be behind its competition and miss out on selling to a global market 24/7.

Question 5

Explain examples for corporate culture

Answer 5

Through the use of uniforms staff will form an identity with the organisation. This will lead to a lower staff turnover.

Having company values and beliefs can attract high quality staff. This will result in a better quality service provided to customers.

Having uniformity if layout can make customers feel more at ease as they know the business. The effect of this is that customers will be more likely to shop with the organisation, no matter where they are located.

The use flexible working arrangements such as flexitime or working from home can create a culture of trust and empowerment within the organisation. The effect of this is that employees work-life balance will be improved.