External Factors Affecting The Business Environment
Business is a company transacts business activities of making, buying, selling goods or providing service in order to earn profit identify by Merriam-Webster. (Merriam-Webster, 2015) Business can be an organization, entity engaged in commercial, industrial or any professional activity. Most of the business activities affect the environment. The environment can be identified everything surrounding a system include external and internal factors. External and internal factors may influence each other and also work together to affect a business. Besides that, there are three levels of business environment which are macro- environment, micro- environment and internal environment. (Grimsley, S., 2013) Compare to the business environment …show more content…
It affects organisations how to achieve their objectives. (Web Finance ,2016) There are some examples of internal factors such as the organization's culture, business structure, business stability, management, and incentives. Organization's culture includes management structure and internal communication. Having positive organizational culture is vital for an organization since it can impact employee morale and the time of completing projects. The business structure is the second example of the internal factor. A good structure enhances efficiency. On the other hand, it may be ineffective for the organisation if their business structure is that stifles communication or creates too many levels of approving a given issue. The third internal factor is business stability. A business that is able to provide exactly what it promises over a long period of time is likely to win a lot of customers. However, a business that faces challenges in keeping its promises may end up being unreliable as it will be viewed as unstable. The fourth internal factor is the management of the company. If the company have a highly qualified people, it is likely to remain profitable. On the other side, constant mismanagement of the business will inevitably lead to poor performance. Incentive is the fifth internal factor of the business. While incentives are generally viewed as good for any business, the manner in which they are …show more content…
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