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which have a influence on the functioning of business Types of Environment Internal Environment External Environment .Environment of any organisation is "the aggregate of all conditions. events and influences that surround and affect it" Environment includes all factors .internal and external .
organisation and functional means to suit the environment The internal environment determines a strength or weaknesses of a business organisation . physical facilities.Internal factors are generally regarded as controllable factors because the firm has control over these factors The firm can alter or modify some of the factors such as its personnel.
government and legal factors etc are generally regarded as uncontrollable factors They present the environment with several threats and opportunities . on the contrary. are beyond the control of the firm External factors such as economic factors. sociocultural factors.External factors.
Factors Influencing Business Business Environment Internal Environment External Environment Micro Environment Macro Environment .
owners’ relations show stronger internal power relationships . dedication to work. (d) Internal Power Relationship: Good employee-management relations. (c) Management Structure and Nature: A well defined organisational structure helps in attaining proper coordination in all activities of business and efficient and uninterrupted communication. social responsibilities etc.Internal Environment/Factors (a) Value system: Value system is important attribute that determines an organisation’s attitude. loyalty. (b) Mission and objectives: Missions and objectives help an organisation in choosing the best course of action and decide where the organisation wants to reach in the future. code of conduct. management. ethical standards.
other internal factors effecting business are.(e) Human Resources: well trained and skilled human resource is the key to a successful business (f) Company Image and Brand Equity: Another internal factor affecting business relates to its image and brand equity.Physical assets and plant layout facilities. R and D and technological capabilities Marketing resources. . The image that a company enjoys in the eyes of the shareholders influences its functioning to a large extent (g) Miscellaneous Factors: In addition to the above. Financial resources etc.
External Environment/Factors Micro Environment Macro Environment Economic Political and Legal Suppliers Customers Socio cultural Competitors Technological Intermediaries Financers Public Global Physical Demographic .
Micro Environment .