Internal and External factors

Internal and External factors
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Table of Contents
INTRODUCTION...........................................................................................................................3
Explain how internal and external factors impact on a specific business...................................3
Explain the different ways in which a business can impact on the external environment..........5
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................7
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INTRODUCTION
Factors are the key actors which affect functioning of a company internally and
externally. These are present in business environment which affects decision making and
operations of a company. External factors are present in the macro environment of a company
which are also known as uncontrollable factors. Similarly, internal factors are those factors
which are present inside the company. These factors affect operations of a company leading to
fluctuations in the performance of a company. Thus, both factors affect company's operations
due to dynamic and uncertain nature of environment of a company. Tesco is one of the leading
brand in retail industry (Fernández-Olmos and Ramírez-Alesón, 2017). It has multinational
supermarket chains with large number of consumer products headquartered in London. In this
report it includes impact of internal and external factors on company. Also, impact of business
on external environment in different ways.
Explain how internal and external factors impact on a specific business
INTERNAL FACTORS IMPACTING BUSINESS:
Internal Factors refers to such factors which affects the business internally. Such factors are
controllable within the organizations and does not impact the economy as whole. These impacts
only the internal management of the company or the operations and the success of the individual
organisation. Factors such as Communication, Leadership, Organisational structure, Vision and
mission, Firm's value, Company culture,etc.
The internal factors in respect of TECO are as under:
 Communication: Communication refers to the interaction between or two or more
persons. No company can work without communication since it gives flow to the
information, objectives, rules, purpose, etc. If in the organisation the level of
communication or the mode of communication is not specified then it will create chaos
and will confuse the employees to whom to communicate. TESCO adopts various
channels of communication with its employees in order to pass right information at right
time to the right person.
 Leadership: Leadership refers to the skill of influencing other people in the organization
and to motivate them to work with greater efficiency (Hur, Shannon and Wolf, 2016). If
any company is having a good leader with it then the success of any organisation is
predicted whereas if not then the employees will feel demotivated and will miss the
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