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INTERNAL ENVIRONMENT The internal environment is the environment that has a direct impact on the business.

Here there are some internal factors which are generally controllable because the company has control over these factors. It can alter or modify such factors as its personnel, physical facilities, and organization and functional means, like marketing, to suit the environment.

Management structure and nature The structure of the organization also influences the business decisions. Rahimafrooz is a proponent of Management by Objectives (MBO) .Rahimafroozs MBO are found in the form of the 5S Japanese technique they follow both in the organizational and individual level: seiry (differentiating between necessary, unnecessary and disposable), saiton (a layout satisfying all requirements), saiso (emphasis on a clean work environment), setuske (routine effectiveness of operations), and seiketsu (maintaining an organized standard). The Senior Management of Rahimafrooz is as follows: NEAZ RAHIM MUNAWAR MISBAH MOIN AFROZ RAHIM MUDASSIR MURTAZA MOIN FEROZ RAHIM MOHAMED ISMAIL Group Director Group Director Group Chairman Group Director Group Managing Director Group Deputy ManagingDirector

Human resource Rahimafrooz is a company grown from small trading concern into the regional player that is today. Rahimafrooz is poised for new phase of dynamic growth. Today Rahimafrooz is striding into the 21st century with a vision for growth and diversification. Their corporate strategy aims

for international partnerships and a path of dynamic growth: they intend to transcend national borders and evolve into a globalize business group. Rahimafrooz believes that attracting and retaining talented employees is the key to long term success. Employee retention involves a two-pronged approach of creating development opportunities for key employees and providing incentives (through compensation) that strengthen loyalty. Also Performance appraisal and Handling Grievances are two key factors in employee retention. Of all the changes a company can make in order to improve morale, decrease human resources costs, limit personnel liability, none is more effective than focusing on hiring the right person for the job. The hiring process of Rahimafrooz consists of three distinct processes:

Human Resource Planning (HRP); Developing Analysis, Description and Specification of the job for which hiring is performed,

Recruiting and Selection.

Company image and brand equity: The image of the company in the outside market has the impact on the internal environment of the company. It helps in raising the finance, making joint ventures, other alliances, expansions and acquisitions, entering sale and purchase contracts, launching new products, etc. Brand equity also helps the company in same way.

Miscellaneous factors The other factors that contribute to the business success or failure are as follows:

Physical assets and facilities: Facilities like production capacity, technology are among the factors which influences the competitiveness of the firm. The proper working of the assets is indeed for free flow of working of the company.

Research and development: Though R&D department is basically done external environment but it has a direct impact on the organization. This aspect mainly determines the companys ability to innovate and compete.

Marketing resources: Resources like the organization for marketing, quality of the marketing men, brand equity and distribution network have direct bearing on marketing efficiency of the company.

Financial factors: Factors like financial policies, financial positions and capital structure are also important internal environment affecting business performances, strategies and decisions.

It refers to the environment that has an indirect influence on the business. The factors are uncontrollable by the business. There are two types of external environment.

Micro Environment The micro environment is also known as the task environment because the micro environmental forces have a direct bearing on the operations of the firm. Customer: Rahimafrooz has the largest number of battery customer in Bangladesh including both individual and business customers. IPS, UPS, batteries for IPS and UPS, automotive batteries etc are the products for individual customers. There are also business customers for these products but their main business customers are for VRLA batteries.

Competitor: Rahimafrooz is playing a sort of monopoly role in the market of batteries and IPS, UPS and having the advantage of pure monopoly in the sectors of battery recycling and solar battery production. Their intra-type competitors for batteries, IPS and UPS are Navana, Aftab, Grameen, BRAC, Energypac, Intraco etc. Walton, Honda, Genpower, Power Sonic, Apollo etc. are some foreign competitors. But most of the domestic competitors do not have a mentionable market position that could challenge Rahimafrooz. A few inter-type competitors are there who are the producers of generators are. So they are not the direct competitors but indirectly they are giving them a sort of competition.