Internal And External Factors Of Business Environment

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Business environment consists of external and internal factors. Internal environmental factors are events that occur within an organization. An organization's internal environment is composed of the elements within the organization, including current employees, management, and especially corporate culture (that defines employee behaviour). Although some elements affect the organization as a whole, others affect only the manager.
Generally internal environmental factors are easier to control than external environmental factors. Some examples of internal environmental factors are as follows:
• Management changes
• Employee morale
• Culture changes
• Financial changes and/or issues

2.2 OBJECTIVES:

 Identification of Influential Factors: The
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Just as each person has a distinct personality, so does each organization. The value system of an organization distinguishes it from others and shapes the actions of its members. There are four important components that make up a Value system or Organizational Culture: o Values o Heroes o Rites and rituals o Social network
Values are the basic beliefs that define employees' successes in an organization. For example, many universities place high values on professors being published. If a faculty member is published in a professional journal, for example, his or her chances of receiving tenure may be enhanced. The university wants to ensure that a published professor stays with the university for the duration of his or her academic career — and this professor's ability to write for publications is a value.
The second component is heroes. A hero is an exemplary person who reflects the attitudes, image or values of the organization and serves as a role model to other employees. A hero is sometimes the founder of the organization (think Steve Job of Apple and JRD of Tata). However, the hero of a company doesn't have to be the founder; it can be an everyday worker, such as hard‐working paralegal Erin Brockovich, who had a tremendous impact on the
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