internal influences in the business environment Flashcards
define internal environment
includes those factors over which the business has some degree of control
what are the internal influences?
product, location, resources, management, business culture
how does the product of a business influence the business?
affect a businesses internal structure of an organisation and its operations
what are product influences?
type of good or service produced
the sector the business is operating in (i.e. type of business)
size of the business will include access to technology and level of specialisation
define the product of a business
what a business makes or provides in the form of a good or service
what are location factors that affect a business?
visibility, cost (e.g. rent, shipping), labour supply and proximity to suppliers, customers, support services
what location factors put a business in prime location
customer convenience (proximity) and visibility
what are the type of business management structures?
traditional hierarchal structure and flat emerging structure
what are the characteristics of a traditional hierarchical structure?
long chain of command (more positions to go report and instruct through)
narrow span of control (one supervisor controlling small group)
autonomous (working by themselves)
autocratic (one way of doing things)
less responsive to the market
power is not shared
employees depend on supervisor to tell them what to do
for semi/no skilled jobs
what are the characteristics of a flat emerging structure?
short chain of command
wide span of control (one supervisor is controlling a large group)
people multi tasking (job enrichment)
democratic (two way communication -> more suggestions and more innovation)
more responsive to the market
define business culture
refers to the intangible attitudes, values and thoughts of employers and employees within an organisation
how does business culture influence businesses?
change business structure to promote efficiency
what are essential elements of business culture?
values, symbols, rituals, heroes
what are stakeholders influence on a business?
stakeholders have a direct influence on a business because they have voting rights on major business decisions
identify stakeholders in a business?
government, suppliers, employees, union, customers, environment, society/general public, employers, employer association, owners/shareholders, managers
