Q:

What are internal factors that affect businesses?

A:

Quick Answer

According to the Houston Chronicle, the biggest internal factors that affect a business are organizational structure and communication within the organization. These factors lead to motivated employees who feel they have defined roles in the organization and contribute to its overall success.

Continue Reading

Full Answer

Azcentral.com explains that other important internal factors for businesses include creditworthiness, image and reputation. These factors are largely in control of the business owner, and changing them can drastically increase the chance the business has to succeed. Azcentral.com recommends changing the decor within the office to reflect the desired image of the business as well as paying close attention to the organizational structure.

According to the Houston Chronicle, structure is one internal factor that affects every aspect of day-to-day life for a business and its employees. Organizations with a more hierarchical structure may have more control over their end product, but they incur greater expense in time and other resources. On the other hand, organizations that give employees autonomy spare expense at the cost of control. The Houston Chronicle also advises business owners to make communication with employees at all levels a priority, since a lack of communication renders employees unable to do their jobs. Poor communication affects the internal environment of the business as a whole and stalls its productivity.

Learn more about Managing a Business

Related Questions

  • Q:

    How do you carry out a SWOT analysis?

    A:

    Carry out a SWOT analysis on a business by conducting a thorough inventory and examination of its internal structure and organization to find its greatest strengths and weakness, either as a whole or in a specific area. The process also involves research on competitors to identify the areas in which the company may improve and to detect any possible threats to its operation.

    Full Answer >
    Filed Under:
  • Q:

    What is the "systems approach"?

    A:

    Managers have a "systems approach" in business when they focus on the interdependence of various functions of the organization and external factors in making decisions, according to BusinessDictionary.com. This approach contrasts with a highly functional or analytical approach where decisions made by each business unit are separate from those made in other areas of the organization.

    Full Answer >
    Filed Under:
  • Q:

    What are the principles of organization?

    A:

    Key principles of organization involve letting go of past organizational structures in favor of a fresh approach, fixing problems in the structure before implementing a new one and fully utilizing top talent. Additional key factors include accountability, purposeful hierarchy and organizational strength.

    Full Answer >
    Filed Under:
  • Q:

    What is the definition of a functional organizational structure?

    A:

    A functional organizational structure is one in which an organization is divided into different departments or functional work activities. Common functions include operations, accounting, marketing, information technology and human resources. A level of top managers typically oversees the work carried out in each functional area.

    Full Answer >
    Filed Under:

Explore