Internal Business Environment

Business Environment- Internal to the Enterprise

By: Neha Khan
Shubham Bhardwaj

1. TYPES OF ENVIRONMENT-INTERNAL TO THE ENTERPRISE Presented By: NEHA KHAN SHUBHAM BHARDWAJ

2. BUSINESS ENVIRONMENT Every business functions as part of an environment, which is known as its business environment.  The business environment consists of all those components that influence the decisions, actions, strategies and objectives of a business organization in some way or the other.

3. TYPES OF BUSINESS ENVIRONMENT

4. BUSINESS ENVIRONMENT- INTERNAL TO THE ENTERPRISE

5. INTERNAL ENVIRONMENT FACTORS

6. VALUE SYSTEM The value system of an organization is also known as the philosophy of an organization.  The value system of an organization contains work processes, culture, norms, climate, and work processes of an organization. The value system of an organization defines the way it works or treats its employees and customers.  The value system of an organization also determines how the employees of the organization should perform their duties. They should do their work by remaining within the value system.

7. MANAGEMENT STRUCTURE AND NATURE   An  organizational structure  is a system that outlines how certain activities are directed in order to achieve the goals of an  organization . These activities can include rules, roles, and responsibilities . The  organizational structure  also determines how information flows between levels within the  company . Structure of an organization defines the composition of the board of directors, management, and shareholders. 

8. HUMAN RESOURCE Human resource is the most crucial asset to an organization.  Human Resource-  employees with relevant skills, knowledge and positive attitude towards work make the business successful. The success of an organization depends on the human resource of an organization.

9. PHYSICAL ASSETS AND FACILITIES A physical asset is an item of economic, commercial, or exchange value that has a material existence.  Physical assets are also known as  tangible assets .  Finances –  refers to the funds required for the business to run. A business with enough/adequate funds is likely to do well. Physical resources - includes properties, equipment, and inventory and all other tangible assets of an organization.  The physical resources are significant for the success of an organization. A company with better and more modern physical assets has a competitive edge over its competitors.

10. COMPANY IMAGE AND BRAND VALUE Corporate image means- the reputation of an organization in the market.  A company with a positive corporate image attracts the right talent in the organization. Company's image and Brand value helps in raising finance, making joint ventures, alliances, expansions, acquisition, etc.

11. RESEARCH AND DEVELOPMENT R&D is basically done on external environment but it has direct impact on the organization. It mainly determines the company's ability to innovate and compete. Business needs  innovation  in order to keep up with competitors. A lack of innovation can pose a serious risk to a growing business.

12. INTANGIBLES An  intangible  asset is an asset that is not physical in nature.   Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all  intangible assets . Customer-related intangibles- customer relationships and order book. Marketing-related intangibles- brands and tradenames.  Technology-related assets- such as patents and software,etc.

13. COMPETITIVE ADVANTAGE Competitive advantage - the superiority that is enjoyed by a firm over its competitors. It is superiority of a firm in a specific competitive area. A firm is said to have competitive advantage when it has access to the superior quality of resources with some additional benefits, such as skilled and trained employees, latest technologies, etc. These can lead to achievement of competitive advantage by the firm.

14. The greatest thing about internal factors is that  you have control over most of them .

15. SWOT ANALYSIS

16. STRENGTHS Strengths are the features of your business which allow you to work more effectively than competitors.  Your specialist technical knowledge could be your strength. When you try to find company’s strengths, try to answer the below questions: What is it that you do well? What benefits do you have over your competitors? What makes you stand out from the competitors?

17. WEAKNESSES Weaknesses are the areas which have scope for improvement. For example:  if you have a lower productivity or higher cost base than your competitors. Ask the following questions: What are you bad at? Is there anything you could be better at? What should you avoid? What leads to problems or complaints?

18. THANK YOU