Q:

What are internal factors that affect businesses?

A:

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.

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.


Is this answer helpful?

Similar Questions

  • Q:

    What is the "systems approach"?

    A:

    Managers have a "systems approach" in business when they focus on the interdependence of various functions of the organization and external factors in making decisions, according to BusinessDictionary.com. This approach contrasts with a highly functional or analytical approach where decisions made by each business unit are separate from those made in other areas of the organization.

    Full Answer >
    Filed Under:
  • Q:

    How do you write a staffing plan?

    A:

    A comprehensive staffing plan is essential for the successful running of a business, as finding the right staff levels in an organization is accompanied by the risks of over staffing and under staffing. In cases where an organization is under staffed, the employees feel stressed and overworked and productivity suffers, and the best producers may leave. When an organization is over staffed, many workers are idle and there is wastage.

    Full Answer >
    Filed Under:
  • Q:

    What are external factors?

    A:

    In business, external factors are circumstances or situations outside the business that a business cannot control. These factors include social, political, technological, environmental, legal and economic issues.

    Full Answer >
    Filed Under:
  • Q:

    What are internal constraints?

    A:

    According Business Case Studies LLP, internal constraints are factors that are under the control of a given company yet interfere with its ability to make decisions that are in its own best interest. They are typically influenced by business culture and policies.

    Full Answer >
    Filed Under:

Explore