Internal Factors of Business Environment

Internal Factors of Business Environment

1. INTERNAL FACTORS OF BUSINESS ENVIRONMENT Presented by: Pratidhee Palak Jha

2. Business Environment Business environment consist of all those factors that have a bearing on the business. The term 'business environment’ implies those external forces, factors and institutions that are beyond the control of individual business organizations and their management and affect the business enterprise.

3. Types of Business Environment

4. Various Factors In Internal and External Environment

5. Internal Environment Forces or conditions or surroundings within the boundary of the organization are the elements of the internal environment of the organization .

6. OWNERS Owners are people who invested in the company and have property rights and claims on the organization . Owners can be an individual or group of people who started the company; or who bought a share of the company in the share market. They have the right to change the company’s policy at any time.

7. Organizational Structure The structure of the organization also influences the business decisions . The board of directors is the governing body of the company who are elected by stockholders. Their responsibility is overseeing a firm’s top managers.

8. Organizational Culture Organizational culture is the collective behaviour of members of an organization and the values, visions, beliefs, habits that they attach to their actions. An organization’s culture plays a major role in shaping its . Acts as the foundation of the organization’s internal environment.

9. Value system The value system of an organisation means the ethical beliefs that guide the organisation in achieving its mission and objective . It determines its behaviour towards its employees, customers and society at large . The value system of the promoters of a business firm has an important bearing on the choice of business and the adop­tion of business policies and practices .

10. Mission & Objectives The objective of all firms is assumed to be maximization of long-run profits . But mission is different from this narrow objective of profit maximization. Mission is defined as the overall reason which guides and influences its business decision and economic activities.

11. Quality of Human Resources The success of a business organisation depends on the skills, capabilities, attitudes and commitment of its employees. As it is difficult for the top management to deal directly with all the employees of the firm therefore, they are divided into different groups.

12. Labour Unions Labour Unions collectively bargain with top managers regarding wages, working conditions of different categories of employees . Smooth working of a business organisation requires that there should be good relations between management and labour union.

13. Thank you! Any queries?