NATURE OF BUSINESS: Internal influences Flashcards
what are the internal influences
products, locations, resources, management, operations, culture
- CAN be controlled
product influences
-affect range of internal structures + operations within the business.
- Type of goods and services they produce
- Range of products, size of operations & other functions.
- Type of business - good or service, requirements of business itself
- Size of the business - range and type of products, level of technology and volume of goods relates to size
location influences
Visibility - important for customer flow, ease of locating
Cost - cost of rent etc - shopping centres more bc of guaranteed foot traffic
Proximity to suppliers
Proximity to customers - Convenient?
Proximity to support services - other businesses needed to assist in operation eg. post offices, accountants etc.
resource influences
combining of research: products made
HR - employees, owners etc - most important
Information resources - knowledge & data required to run the business - market research, sales reports, forecasts etc
Physical resources - equipment, machinery, buildings materials
Financial resources - funds
management influences
trend: flatter hierarchical system (less “middle management” type positions).
- allows business to adapt quickly to changes in market place.
- hierarchical approach: allocate managers/supervisors to teams
- businesses emphasise teamwork, delegation and sharing of responsibility
- Management style depends on the function of the business and size
business culture influences
- The values, ideas and expectations of an organisation, style + attitude reflected through this
- can consist of formal rules and training but is also the ‘informal feeling’ in a workplace
- heavily dependent on its organisational structure.
rigid hierarchical approach: emphasise accountability, delegation and respect for superiors.
Less formal structures:emphasise communication, teamwork and positive relationships.
Role of management: maintain and build positive business culture, important for staff to be trained, behaviour modeled and communicated
what are stakeholders
Any group or individual who has an interest in a business or is affected by the activities of a business
examples of stakeholders
shareholders
managers
employees
customers
society
environment
shareholder impact
- purchase shares in company
- considered partial owners
- want profit
manager impact
- responsible for overseeing that business is organised/running as intended
employees impact
-manufacture good or deliver service
- influences through quality of work,skill,knowledge
- these factors affected through their job security + satisfaction
customers impact
most influential external stakeholder
- spending decisions, media
Society impact
tastes and trends
- expect to be responsible for decisions made in relation to concerns today e.g environment/welfare
environment impact
- limited resources available need to be used sustainably
- important as businesses/society cannot afford to utlise today’s resources to the extent that they are not available for next generation
internal stakeholders
within business who have interest in company
managers, employers, employees
external stakeholders
entities outside business who care about/affected by performance
government, customers, society, employer associations, environment
