N5S3 - Internal Factors

Question 1

Name the three types of internal factors

Answer 1

1. Human Resources
2. Avaliable Financal Resources
3. Current Technology

Question 2

Describe the impact of Human Resources on a business

Answer 2

The skills, experience and motivation of employees and managers can impact a business positively or negatively.

Employees
Poor performance will result in inferior products being produced and a poor service being offered to customers. This will affect sales and the reputation of the business.

Managers
Inexperienced managers may make bad decisions which could result in missed opportunities or high staff turnover.

Question 3

Describe the impact of Avaliable financial resources on a business

Answer 3

A business needs adequate funds in place in order for it to survive and grow successfully.

If they do not have the finances, they will not be able to:

• Invest in advertising
• Develop new products
• Hire new staff
• Expand their premises etc.

Question 4

Describe the impact of the current technology on a business

Answer 4

This refers to the technology the business currently uses.

Up to date technology benefits:

• makes a business more efficient
• gives them a competitive edge
• increases sales opportunities e.g. online shoppers.
• allowing staff to work from home.

Out of date technology can lead to things like higher repair costs and poorer quality.