What Are The Internal And External Factors That Affect Business?

These factors create certain expectations and requirements for organizations, which in turns determine the organization's direction and strategy. Whereas internal environment is made-up of several internal subsystems. Internal subsystems work together systematically and drive the organization in the direction which is in conformity to external environment demands; thereby making the organization effective and a good fit with external environment. (McShane & Steen, 2012, p.6)

Human Resource Practice says “it maybe a cliché that people are an organisations greatest assest, but no orgaisation exists without people and nothing is achieved expect through their efforts” (Page 9)

This business report will explore the internal and external influences which help shape businesses. The NSW government has All business decisions about how and what to produce are affected by the environment in which the business operates. Successful business managers have a good understanding of the environment in which the business operates. This allows them to respond positively to changes that take place and prepare for the impact such changes will have on their business operations. It is through these influences which shapes a business’s productivity and success.

In internal factors, the organization seek controlling in internal influences of productivity and profitability for organization. What could the organization affect to reach its objectives? , like employee competencies, management style, product or service and the policies or procedures, etc.

The internal and external fact of functions affects management every day. It is the performance that an organization or company within itself could turn out positive or negative. This also pertains to the outside world, where the factors can be beyond the control of the organization in positive or negative situations. The concepts in management implements the four functions needed for the core requirement in management. Planning is the foundation base which all others areas are built. There may be sudden strategies required to be implemented

1. Identify three (3) job requirements (e.g., needed certifications, previous work experience, external influences, etc.) that could apply to your chosen scenario. Determine two (2) ways these requirements could impact staffing at your organization. Next, suggest one (1) strategy that you could utilize to ensure that all applicants meet the identified job requirements for your organization. Justify your response.

Political factors relate to way in which changes in the government and government policies can influence the business.

Explain the knowledge, skills and behaviours required to be effective in an identified HR role.

Communication is a very important part of an organization. Communication in to the process of transmitting and getting messages. The

External environment refers to external aspects of the surroundings of business enterprise, which have influence on the functioning of business. The external environment can provide both facilitating and inhibiting influences on organizational performance. Key dimension of the external environment principally consists of a micro environment and a macro environment.

The purpose of this paper is to analyze the culture, the internal, and the external factors in an organization. Our job is to examine the entirety of the organization. That would include the structural and environmental elements that effect the operation of the business. We will also take an in depth look at the perspectives of employees, managers, owners, and clientele.

INTERNAL ENVIRONMENT Relates to the culture and  climate of an organisation  and to the prevailing  atmosphere surrounding  the organisation. CAPABILITIES A company’s distinctive  competencies to do  something well and  efficiently DYNAMIC CAPABILITIES the firm’s ability to  integrate, build, and  reconfigure internal and  external competences to  address rapidly changing  environments ORGANISATIONAL  CLIMATE Relating to the prevailing  atmosphere surrounding  the organisation, to the  level of morale, and to the  strength of feelings or  belonging, care and  goodwill among members.

The internal environment consists of the inherent competencies of the firm and the structure of its internal systems and processes. It is imperative for the organization to conduct an internal analysis

Communication Communicating means the passing on or receiving of information. Communication is important so that information, instructions, directions and requests can be passed between people and organisations. Internal and External communications This can be by verbal, non-verbal or written means between people within the same organisation e.g. change of venue for meeting, which is internal communication because the information sent around within the organisation. Text Box: [IMAGE]External communications take place between one organisation and another e.g. Order/delivery confirmation or from one

The internal business environment includes factors within the organisation that impact the approach and success of the business operations. Formerly presented as core competencies, capabilities, leadership style and culture of an organisation. To understand its sources of competitive advantage from within a firm or an organisation will implement specific tools such as SWOT analysis (Strength, Weaknesses Opportunities and Threats), Value chain analysis, Resource based view, VRIO framework and BCG Matrix for instance.