Q:

What are internal factors that affect businesses?

A:

Quick Answer

According to the Houston Chronicle, the biggest internal factors that affect a business are organizational structure and communication within the organization. These factors lead to motivated employees who feel they have defined roles in the organization and contribute to its overall success.

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Full Answer

Azcentral.com explains that other important internal factors for businesses include creditworthiness, image and reputation. These factors are largely in control of the business owner, and changing them can drastically increase the chance the business has to succeed. Azcentral.com recommends changing the decor within the office to reflect the desired image of the business as well as paying close attention to the organizational structure.

According to the Houston Chronicle, structure is one internal factor that affects every aspect of day-to-day life for a business and its employees. Organizations with a more hierarchical structure may have more control over their end product, but they incur greater expense in time and other resources. On the other hand, organizations that give employees autonomy spare expense at the cost of control. The Houston Chronicle also advises business owners to make communication with employees at all levels a priority, since a lack of communication renders employees unable to do their jobs. Poor communication affects the internal environment of the business as a whole and stalls its productivity.

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