internal factors

Question 1

what are the four main internal factors?

Answer 1

• corporate culture
• human resources
• finance
• technology

Question 2

what is corporate culture?

Answer 2

the attitudes, beliefs, values and norms of an organisation

Question 3

what are five ways of promoting corporate culture?

Answer 3

• staff uniforms
• company policies
• incentives and rewards for staff
• training and development programmes for staff
• teambuilding for employees

Question 4

what are five benefits of corporate culture?

Answer 4

• happier more contented staff who identify with the organisation
• values and perks can attract quality staff which results in a better quality service
• staff can move between branches/departments more easily as they will all be using the same policies and practices
• open plan/relaxed office layout encourages collaboration which measn better communication and idea sharing
• can attract new customers if they identify with the aims/values of the organisation

Question 5

what are five ways in which a manager can influence the effectiveness of an organisation?

Answer 5

• effective decision making to increase productivity, increase profits and grow the business
• recruiting, training and managing staff effectively
• motivating staff and creating a positive work environment
• managing the finance of an organisation effectively
• creating policies that motivate employees and setting realistic goals

Question 6

what are five ways in which employees can influence the effectiveness of an organisation?

Answer 6

• being motivated and committed to the organisation
• satisfying customers through quality of service
• improving their skills through training
• levels of attendance and absenteeism
• taking industrial action

Question 7

how can finance impact a business?

Answer 7

• finance is needed to help meet the needs of the business as it grows
• lack of finance may mean it is unable to hire new staff, buy new equipment, develop new products or do effective marketing activities: adversly impact growth and success
• a business with cash flow problems may be unable to pay wages and other operating costs and may be forced to shut down

Question 8

what are the five types of finance that may be available to a business?

Answer 8

• retained profits
• bank loan
• overdraft
• commercial credit
• government grants

Question 9

how can technology internally impact a business?

Answer 9

• business can use new technology to improve efficiency: the use of smartphone technology can enable staff to work while away from the office
• savings can be made by staff using video conferencing technology instead of travelling to meetings
• a business can use its own website and social media platforms such as x and facebook to establish a close link to its customers and to promote its products
• businesses may need to provide an option for customers to buy products online
• businesses that invest in digital technology can often gain a competitive advantage over rival firms that don’t (the opposite applies)