Internal and External factors

Kukri and its Environment
(Internal and external environment)
Introduction
Business operates in the dynamic and complex
environment and becomes vulnerable to the several
micro and macro factors which constitute and
prevails in the environment in which business
operates. Kukri is a leading international sports
brand specialized in manufacturing for over 100
sports including football, cricket, rugby etc. The
objective of the report is to identify internal and
external factors along with the company impacts on
the external environmental factors.
Internal Factors
These factors are in control of the company, therefore
risk associated with this can be mitigated.
• Workforce working in manufacturing plant.
• Infrastructure including building, machinery and
equipment.
• Plans and policies to govern and direct business
activities.
External Environment
These factors prevail in external environment
therefore, can-not be controlled and predicted.
Micro factors
• Customers: Change in customer demands
and preferences.
• Competition: Intense competition and
availability of substitute products.
• Inputs: Non availability or raw material
and monopoly of suppliers.
Macro factors
• Economic: Rise in the
inflation rate and frequent
changes in interest rates.
• Political: High intervention of
government through restricts
policies and laws.
• Legal: Strict and rigid laws
and regulation of a nation.
Kukri’s impact over external environment
• Technological: Changes in the methods of
production through cost and energy
efficient machinery and equipment.
• Legal: Formation of new policies and
regulations and strict adherence to operate
without any interruption.
• Environmental: Adoption of novel and
innovate methods to emit low carbon and
proper waste management.
Macro factors
• Economic: Rise in the inflation rate and frequent changes in
interest rates.
• Political: High intervention of government through restricts
policies and laws.
• Legal: Strict and rigid laws and regulation of a nation.
References:
Creswell, K.G. and Bachrach, R.L., 2020. A Commentary on Drinking to Cope During the COVID‐19 Pandemic: The Role of External and Internal Factors in
Coping Motive Pathways to Alcohol Use, Solitary Drinking, and Alcohol Problems. Alcoholism: Clinical and Experimental Research. 44(11). pp.2150-2153.