Q:
What are internal factors in business?
A:
Quick Answer
Internal factors are those issues that affect the business's performance either negatively or positively and originate from within the business. These factors may increase profitability or cause loss depending on how they are handled.
Continue ReadingFull Answer
Internal factors are the opposite of external factors which are generally those issues that affect the business but are beyond the control of the management. Below are some details regarding various examples of internal factors:
- The business structure ��� if a business has a structure that stifles communication or creates too many levels of approving a given issue, it may end up being ineffective. A good structure on the other hand enhances efficiency.
- Business stability ��� a business that is able to provide exactly what it promises over a long period of time is likely to win a lot of customers. However, a business that faces challenges in keeping its promises may end up being unreliable as it will be viewed as unstable.
- Management ��� when a business is managed by highly qualified people, it is likely to remain profitable. However, constant mismanagement of the business will inevitably lead to poor performance.
- Incentives ��� while incentives are generally viewed as good for any business, the manner in which they are given determines a lot. If some employees view the incentives as being partial or aimed at a chosen few, this could easily lead to poor performance since a group of employees will be motivated while another group feels unappreciated.
Related Questions
-
Q:
What are strategic issues in business?
A: Strategic issues refer to important aspects that require attention in order to achieve the business goals of a company. Strategic issues require careful de... Full Answer >Filed Under: -
Q:
What are some tips for starting a pressure washing business?
A: Tips for starting a pressure washing business include getting clients before starting the business, doing extensive research, hiring professional help and ... Full Answer >Filed Under: -
Q:
What are the pros and cons of mergers?
A: The pros of business mergers include factors such as monopoly regulation, research and development, duplication avoidance and network economies, while the ... Full Answer >Filed Under: -
Q:
What are the three critical success factors that can make or break a business partnership?
A: There is no single reason a business partnership succeeds or fails, but there are certain factors that can make or break a business partnership. Here are t... Full Answer >Filed Under:
