Impact of Internal and External Factors on Business

BUSINESS IN PRACTICE

Contents
INTRODUCTION.......................................................................................................................................3
Main body...................................................................................................................................................3
A. Impact of Internal and external factors on the business...................................................................3
B. Business impact on the external environment..................................................................................4
Conclusion...................................................................................................................................................5
References...................................................................................................................................................6

INTRODUCTION
The business is the wide concept in the environment which is related to the buying and
selling of the products and services for the profit making. To run the business there are various
internal and external factors that affects the company productivity and sustainability. In the
market various changes are occurring which affect the organization performance and growth.
The businesses are influenced by the environment which is necessary to analyze the environment
factors and market trends. In the study the discussion is based on the internal and external factors
affecting the business and the business affect on external environment. The chosen organization
is Marks and Spencer it is a multinational retail company established in 1884 by Michael Marks
and Thomas Spencer. It deals in clothes, food, home products and financial services. Its
headquarter is located in London, England UK (Glogovac and et.al., 2018).
Main body
A. Impact of Internal and external factors on the business.
The internal factors are those which can be controlled by the company and lies inside the
company no matter whether they are tangible or intangible. These factors help in identifying the
strength and weakness of the company. The internal factors affecting the Marks & Spencer are-
 Employees and managers- The employees are considers most valuable asset of the
company in the internal environment. The employees of Marks & Spencer are very skilled
and good in their jobs to sell the product which leads to increase the sales and profitability.
The managers are responsible in handling the employees and resolve the conflicts. Internal
politics and conflicts between the workers and mangers affect the company.
 Money and resources- If the company is high with the cash and adequate resources it leads
to great flexibility in growth and expand its business in various areas by stable economic
downturn. But if companies has lack or limited of resources and cash it affects the
employees hired, quality and the advertisement amount. It is essential for the Marks &
Spencer to maintain the adequate funds to meet the requirement and having efficiency in
the work (Hoveskog and et.al., 2018).