Internal and External Factors in Business Practice

Introduction
Internal and external factors means those component used by
an business organization to attain growth within particular
market. These factors are responsible for making set goals
and objectives achieved within more effective manner as per
time period specified.
BUSINESS IN PRACTICE
External factors
External factors is defined as that extrinsic factor which
are not in a control of business and on the same way it
directly affect the organisation function.
• Political factors
• Economic factors
• Social factors
• Technological factors
• Legal factors
• Environment factor
Internal factors
Internal factors define several factors that are accumulated
with the companies and also it can be tangible and intangible
in context.
• Strength
• Weaknesses
• Opportunities
• Threats
References
Huy, D.T.N and et. al., 2021. Impacts of Internal and External Macroeconomic Factors on Firm Stock Price in an Expansion
Econometric model—A Case in Vietnam Real Estate Industry. In Data Science for Financial Econometrics (pp. 189-205).
Springer, Cham.
Lyudogovskii, P.L., Fedyaev, V.L. and Komkova, M.A., 2021. Influence of Internal and External Factors on the Geometry
Measurements by Using Laser Coordinate Measuring Systems Based on Trackers. Russian Aeronautics, 64(2), pp.322-329.
Monshipouri, M. and Dorraj, M., 2021. The Resilience of Populism in Iranian Politics: A Closer Look at the Nexus between
Internal and External Factors. The Middle East Journal, 75(2), pp.201-221.
How the company impacts
its context external
environment
In order to accomplish the competitive edge within market
place it is very important to recognise the internal and
external factors so that high success opportunities are
attained and accomplished so that profitability should be
cherished. In terms of Tesco, this company is focus on
business functions at global level.
Impact of internal and external factors

Impact of Internal & External Factors on Business
INTRODUCTION
Tesco is UK based company with headquarter in Welwyn Garden City
External Factors.
External factors are factors that are present outside the business
and business have no control over them. PESTEL analysis is
used:
Political:
Different tax rates, unemployment rates of different countries.
Economic:
High unemployment levels leads to decline in demand of
goods.
Social:
Customers want healthy products. So, Tesco should provide
organic products.
Technology:
Start of online marketing.
Environmental:
Tesco uses renewable sources to deliver products.
Legal:
Changing laws for workers for different payments for day &
night.
Impact of Business on External Factors
Use of technology can help Tesco leave their big infrastructure and
step in use of electronic devices to sell products. This will create
new intervention in political and social environment.
Internal Factors:
Internal Factor are factors that are present in the organization and effect the
operation of business. For this SWOT analysis is used.
Strength:
The Largest supermarket chain of UK
Weakness:
Issues in food packaging.
Opportunities:
Expand business in USA and Japan.
Threats
Competitions with Walmart in other countries.