U1- Internal Factors

Question 1

Name the 4 internal factors which can impact on an organisation

Answer 1

Corporate culture
Finance
Technology
Staffing

Question 2

Why may finance cause conflict within a business?

Answer 2

There will be conflict between departments or managers who will see the need to spend money in their particular area

The money the organisation has will have to be split between competing demands

Question 3

How could a business get more money?

Answer 3

Loans
Debentures
Increased shareholding

Question 4

Name 3 things to consider within the factor of finance for a business

Answer 4

Finance may be restricted which may mean the organisation cannot afford to implement decisions

The business may not be in a position to raise finance externally e.g. Loans

Lack of finance could limit the success of the business if there is no money to expend or buy new resources

Question 5

Name 6 factors to consider when thinking about staffing within an organisation

Answer 5

Staff may be resistant to change

Managers may not have appropriate skills or initiative to make the best decisions

The quality of information available to managers may not be enough for them to make the best decisions

The number of staff available

Staff skills- are they adequate?

Motivation of employees

Question 6

Name 3 factors to consider when thinking about technology within an organisation

Answer 6

The technology may conflict with the organisations corporate culture

Decisions may be constrained by the lack of technology and may mean new technology must be purchased or decisions shelved

The technology available may not be enough for what the managers want to achieve