The internal and external environmental influences

Micro-environment[ edit ] Company aspect of micro-environment refers to the internal environment of the company. This includes all Departmentalization departments such as management, finance, research and development, purchasing, Business operations and accounting. Each of these departments influences marketing decisions. For example, research and development have input as to the features a product can perform and accounting approves the financial side of marketing plans and budget in customer dissatisfaction.

The internal and external environmental influences

Sometimes failure is due to the internal environment — the company's finances, personnel or equipment. Sometimes it's the environment surrounding the company.

Knowing how internal and external environmental factors affect your company can help your business thrive. The Economy In a bad economy, even a well-run business may not be able to survive. If customers lose their jobs or take jobs that can barely support them, they'll spend less on sports, recreation, gifts, luxury goods and new cars.

High interest rates on credit cards can discourage customers from spending.

The internal and external environmental influences

You can't control the economy, but understanding it can help you spot threats and opportunities. Staff Unless you're a one-person show, your employees are a major part of your company's internal environment.

Your employees have to be good at their jobs, whether it's writing code or selling products to strangers. Managers have to be good at handling lower-level employees and overseeing other parts of the internal environment.

Internal environmental factors include the genetic traits, familial tendencies, and physical and psychological characteristics inherent in each person. External environmental factors may be more easily defined; they include the air we breathe, the water we drink, the food we eat, and the surroundings in which we live and work. The addict's dilemma is that what he feels like doing is bad for him - and what is good for him he does not feel like doing. His feelings and his well-being have their wires reversed. In order for managers to react to the forces of internal and external environments, they rely on environmental attheheels.comnmental scanning refers to .

Even if everyone's capable and talented, internal politics and conflicts can wreck a good company. Competition Unless your company is unique, you'll have to deal with competition. When you start your company, you fight against established, more experienced businesses in the same industry.

After you establish yourself, you'll eventually have to face newer firms that try to slice away your customers. Competition can make or break you — look at how many brick-and-mortar bookstores crashed and burned competing with Amazon.

Money Even in a great economy, lack of money can determine whether your company survives or dies. When your cash resources are too limited, it affects the number of people you can hire, the quality of your equipment, and the amount of advertising you can buy.

Internal Factor: Employees

If you're flush with cash, you have a lot more flexibility to grow and expand your business or endure an economic downturn.

Politics Changes in government policy can have a huge effect on your business. The tobacco industry is a classic example. Since the s, cigarette companies have been required to place warning labels on their products, and they lost the right to advertise on television.

Internal and External Environment Factors that Influences Organizational Decision Making

Smokers have fewer and fewer places they can smoke legally. The percentage of Americans who smoke has dropped by more than half, with a corresponding effect on industry revenues. Company Culture Your internal culture consists of the values, attitudes and priorities that your employees live by.

A cutthroat culture where every employee competes with one another creates a different environment from a company that emphasizes collaboration and teamwork. Typically, company culture flows from the top down. Your staff will infer your values based on the type of people you hire, fire and promote.

Let them see the values you want your culture to embody. Customers and Suppliers Next to your employees, your customers and suppliers may be the most important people you deal with.

Suppliers have a huge impact on your costs. The clout of any given supplier depends on scarcity: If you can't buy anywhere else, your negotiating room is limited.

The power of your customers depends on how fierce the competition for their dollars is, how good your products are, and whether your advertising makes customers want to buy from you, among other things.Environmental Factors in Strategic Planning.

For any business to grow and prosper, managers of the business must be able to anticipate, recognise and deal with change in the internal and external environment. Social Skills Activities - Interpersonal Skills We are each driven by both internal and external influences, a person's social conduct is a mixture of personal development and learned behaviors.

How Children's Development Is Influenced By External Factors Aug. 22, The influence of external environmental factors on a child's social. 2 INTERNAL AND EXTERNAL FACTORS THAT ENCOURAGE OR DISCOURAGE HEALTH-RELEVANT BEHAVIORS INTRODUCTION There are a number of factors that determine the likelihood of engaging in a particular behavior.

The business environment is a marketing term and refers to factors and forces that affect a firm's ability to build and maintain successful customer three levels of the environment are: Micro (internal) environment – small forces within the company that affect its ability to serve its customers.

Internal Audit, ISO clause , Audit program, audit frequency, audit method, auditors competency,audit scope and reporting, audit planning, Pretesh Biswas.

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Internal & External Factors That Affect an Organization |