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Factors of Business Environment

   

Added on  2020-10-23

6 Pages723 Words211 Views
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Factors of business environment affect operational management and decision-making by leaders and managerBusiness environment is combination of internaland external factors such as employees, customers,management, suppliers, clients, technology,economic changes etc. which influence thefunctioning of organisation. This concept helps ingrabbing business opportunities, assist in planning,improving overall performance, growth andprofitability of business. These factors affect thedecision-making of managers and leaders. Businessenvironment is further classified as internal andexternal factors which are described below:Internal FactorsInternal factors are those factors whichoccur within the company and impact the operationsand success of the organisation. These factors arewithin the control of the company. Some of theinternal factors are discussed below:Value system- The value system oforganisation comprises of ethical beliefs thatassist in accomplishment of its mission andobjectives. It also determines its behaviour
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towards its employees, customers andsociety at large. In context of Google, thevalue system includes honesty, transparency,fairness, harmonious relations and courtesytowards its employees, customers andsociety at large. Decision making of leadersand managers should be based on ethicalconsiderations and objectives of company. Organisation structure- It refers to systemwhich is used to define hierarchy of jobs andduties in organisation. Google's organisationstructure is cross- functional which istechnically a matrix structure with a highdegree of flatness. High degree of flatnessmeans that employees, teams of Google cancommunicate directly with higher levelmanagement. The head of department makessure that there are suitable rules andregulations to ensure the benefits of businessand employees (Muller, 2014). Decisionstaken by managers and leaders are affectedwith the change in structure of organisation
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