Internal Factors Flashcards
What are internal factors
Internal factors are the things which affect a business from the inside.
What is human resources and how do they affect a business?
HR relates to the people who work in a business. The performance of a business is affected by the quality and impact of the people who work for it.
How do managers affect a business?
Decision Making: good decisions can increase productivity, profits and make the business grow. Poor decisions can result in employees losing motivation which can cause a disruption in production and/or complaints from customers, which can also lead to an impact of public reputation and sales.
Creating policy: managers create policies that aim to motivate employees and set realistic goals.
Hiring and Firing up Employees: managers recruit new staff and let others go.
Setting budgets: managers will decide how much a business can spend within a specific period.
Conducting appraisals with staff: managers need to asses their staff to ensure they’re working effectively.
How do employees influence a business?
Training: a well trained employee fulfils their role efficiently and is an asset to the company; a badly trained one can be incapable of performing basic functions, such as interacting with customer, and are detrimental o the organisation.
Morale: low morale or motivation can lead to poor customer relations impacting on a business’ sales and profit levels.
Productivity
Absenteeism
Ability to perform their job
Training: business can directly improve skills by providing on-the-job or off-the-job training.
Industrial action: bad reputation
What are some reasons for using finance in a business?
- developing new products
- a rise in wage for existing employees.
- hiring new staff
- an advertising campaign for a product
- extending existing premises
- opening a new branch
- buying new machinery and equipment
How does a lack of finance effect a business?
- couldn’t open a new branch
- couldn’t develop new products
- couldn’t hire new staff
- no money for advertising ( can’t attract customers)
- cannot buy stock
- couldn’t extend existing premises
- cannot upgrade equipment
- cannot expand.
How does poor quality technology affect a business?
- loss of customers
- can’t keep up with customers ever-changing requirements
- can’t rely on access or control of social media
- slower production
- breakdowns
- high cost of maintenance/repair
- falling behind their rivals
How does poorly trained or demotivated staff affect a business?
- poor image/reputation
- loss of customers
- less revenue
- poor quality employees-bad service or bad products
What’s a corporate culture?
This means the values, benefits and attitudes within the company which guide its activities, policies and interactions with stakeholders.
What are the features of a business culture?
- business would have a uniform or a dress code
- rules/policies
- hierarchy; management structure and power
- brand identity; logo, corporate colours, office layout.
Types of decisions
Decisions in business can be classified into 3 type:
- STRATEGIC DECISION: the most important decisions concerned with setting the objectives of the business.
- TACTICAL DECISION: concerned with implementing the strategic decisions.
- OPERATIONAL DECISIONS: concerned with the day to day running of the business.
