UB - 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

EMPLOYEES AND MANAGERS

Answer 2

Employees
Poor performance leads to inferior products and poor customer service → lowers sales, damages the company reputation.

Managers
Inexperienced managers may make bad decisions which could mean 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 for it to survive and grow successfully.

None/not enough finances? → business won’t be able to:
* Invest in advertising
* Develop new products
* Hire new staff
* Expand their premises etc.

Question 4

Describe the impact of current technology on a business

Answer 4

Refers to the technology the business currently uses.

Up to date technology benefits:

• More efficiency
• Gives them a competitive edge
• Increases sales opportunities e.g. online shoppers.
• Allows staff to work from home.

Out of date technology = higher repair costs and poorer quality.