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Asked by: Vetuta Hueros
business and finance business administrationWhat are internal and external factors in business?
Customers, competition, the economy, technology, political and social conditions, and resources are common external factors that influence the organization. In order for managers to react to the forces of internal and external environments, they rely on environmental scanning.
Keeping this in consideration, what are internal and external factors?
External factors that affect an organization may be political, economic, social or technological. The same internal factors that lead to an organization's success inevitably characterize that organization's relationship to the external environment in these broad areas.
- External: The Economy.
- Internal: Employees and Managers.
- External: Competition from other Businesses.
- Internal: Money and Resources.
- External: Politics and Government Policy.
- Internal: Company Culture.
Similarly, it is asked, what are internal factors in business?
Internal factors. Internal factors can influence the operations of a business both positively and negatively. The main internal factors are corporate culture, staffing, finance and technology.
Some examples of areas which are typically considered in internal factors are:
- Financial resources like funding, investment opportunities and sources of income.
- Physical resources like company's location, equipment, and facilities.
- Human resources like employees, target audiences, and volunteers.