Internal factors (culture)

Question 1

What are the internal factors?

Answer 1

• Availability of finance
• Staffing
• Technology
• Culture

Question 2

What is the availability of finance?

Answer 2

Making decisions based on budget constraints

Question 3

What are impacts of lack of finance?

Answer 3

• The organisation can’t carry out the decision e.g. developing new products, new technology or offering wage rises
• May have to take drastic actions such as downsizing or delayering

Question 4

What is staffing?

Answer 4

Both managers and employeed impacting the business

Question 5

How can managers impact a business?

Answer 5

• They can have different levels of risks that they are willing to take
• They can have different amounts of experience

Question 6

How can employees impact a business?

Answer 6

• The training they receive
• The moral of the employee (high=happy, loyal, productive)
• The experience they have

Question 7

What is internal technology?

Answer 7

The exoisting available technology in the business that is modern so not left behind by competitors

Question 8

What are examples of internal technology?

Answer 8

• Robottics (high productivity, 24/7, costly to replace)
• E-commerce

Question 9

What is corporate culture?

Answer 9

Values, beliefs or norms relating to the company or organisation that are shared by all its staff

Question 10

Methods used to develop corporate culture:

Answer 10

Company values
Office layout e.g. open plan (communication)
Uniformity of layout e.g. easily go between branches
Language and Jargon
Symbols, slogans and mottos (recognisable)
Rituals e.g. dress down Friday
Reward culture e.g. employee of the month, bonuses
Flexible working arrangement

Question 11

Benefits of corporate culture:

Answer 11

Sense of belonging, loyalty (uniform)
Staff can move between branches easily
Work when most productive (flexible hours)
Staff are relaxed and comfortable (rituals e.g. dress down Fridays)

Question 12

Costs of corporate culture:

Answer 12

Must come from founders/leaders
Difficult to maintain culture during covid (working from home)
Positive culture may be seen as a bribe
Management may lose control if culture is too loose

Question 13

How can organisations overcome internal constraints?

Answer 13

• Training staff to be more efficient
• Strict budgetary control
• Arranging loans
• Motivating employees with incentives