Internal And External Factors In The Business Environment

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Business in today’s modern world is operating in highly dynamic environment consisting of various internal and external factors. Business therefore are required to consistently evaluate themselves both internally and externally as an attempt to survive, grow and to maintain a competitive edge.
The business environment has three key perspectives which involves the internal environment, and external environment which further comprises of micro and macro environmental factors according to Kotler et al (2009).
The internal environment includes factors such as organizational direction, human resource, finances, business processes and strategy, organizational culture, management style and collaboration between various departments that are internal
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(b) The impact of an organization’s strategy on HR plans and practices.-
• Given the volatility of business environment in which an organization operates HR should broaden the parameters of their function and must clearly understand business and other functional area to add value and contribute to overall success of the
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