Assignment | Principles of Management
Added on 2020-02-23
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Running head: PRINCIPLES OF MANAGEMENTPrinciples of ManagementThe Impact of Internal and External Factors on The Business Operating EnvironmentName of the StudentName of the UniversityAuthor note
1PRINCIPLES OF MANAGEMENTIntroductionBusiness environment is comprised of all those elements that boast of having a bearingon the business. Mastering the forces that have an influence on the business environment is achallenging task in comparison with other operational activities. The extent to which these forcescan be controlled varies. These forces can be changed in terms of how they ca affect the firm.However, the economy cannot be touched. Spending, however, can be encouraged. Learningmore about these forces at work would better equip in influencing the business operations. Basedon the intimacy range with the firm, these environmental factors of a business can be classifiedinto two different types. There are broadly two types of environment of a firm, the internalenvironment, i.e. internal factors of the firm and the external environment i.e. external factors ofthe form that contain some relevancy to it (Epstein and Buhovac 2014). DiscussionInternal factorsThe internal business environmental factors influence the approach and success of thebusiness operations. The organization has complete control over the internal factors.Recognizing possible opportunities and threats that are outside the company’s operations areconsidered extremely important. Nevertheless, proper management of the key strengths of theinternal operations is vital for the success of the business (Chan et al. 2012). Some of the mostcommon internal factors are discussed below:The role played by company leadership is an extremely important internal factor. Theexisting leadership styles and other management styles influence the culture of the organization.More often than not, organizations present a formal structure that accompanies its mission and
2PRINCIPLES OF MANAGEMENTvision statements. Leadership approach has resulted in some cultural implications, some ofwhich are as follows:Value given to the staffThe negative or positive natureThe efficiency of communication standard of family friendliness (Kuratko, Hornsby andCovin 2014)Employee strength is another important internal business factor after leadership. Employeeswho are motivated, talented and hardworking would bring in better results than employees whoare demotivated and not talented. Inter-department procedures and associations also has thepotential to better efficiency and effectiveness. A high performing workplace boasts of talentedemployees who work together in a better way. In such situations, the workers and theirdepartments cooperated in terms of ideas and resolutions. Organizational and operationalfactors are a part of the managerial and operational processes. It comprises of imprecise anddisorganized record keeping too. Evaluations must be carried out of factors like interruptions inthe supply chain and faulty IT systems too. If a company fails to overcome these situations thecustomers may start seeing the company as unreliable (Hanim Mohamad Zailani et al. 2012).Strategic risks have the capacity to influence the company’s capability of reaching theobjectives of a business plan. It can be due to the influences of the technological evolutionchanges or even consumer demands. These elements can turn into threats as they have thecapability of altering the way consumers observe the product. On the basis of these, customersmight believe a product is dull, overly priced and outdated. Innovation is required by businessfor keeping up with their competitor. Staying pone step ahead is very essential. Innovation alsopresents itself in the form of marketing, or via advertising initiatives inside marketing plans,
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