U3.2: Influences in the Business Environment - Internal Influences

Question 1

Internal Influences on Business

Answer 1

• Products
• Location
• Management
• Resources
• Business culture

Question 2

Product Influences

Answer 2

• type of goods and services produced - influence structures, setup
• the product - influence the type of business and size of operations
• the size of a business

Question 3

Location Influences

Answer 3

• visibility
• proximity to support services
• proximity to customers
• proximity to suppliers
• cost

Question 4

Resource Influences

Answer 4

• human resources - employees
• information resources - market research, sales reports, economic forecasts, technical material, legal advice
• physical resources - equipment, machinery, buildings, raw materials
• financial resources - money

Question 5

Management Influences

Answer 5

• organisation of roles and quantity for each role
  less fluid (traditional structure):
• centralised
• narrow span: workers controlled: dependant
• task centred
• autocratic, didactic management style
  more fluid (modern structure):
• decentralised
• wide span: workers autonomous: independent
• people centred
• democratic, laissez-faire management style

Question 6

Business Culture Influences

Answer 6

• the shared values, ideas, expectations and beliefs of employees and owners of the business
  elements:
• values (management must reinforce values)
• symbols (positive culture in a business)
• rituals, rites, and celebrations (training for old and new workers)
• heroes (management must be role models)