Internal and External Factors: Impact on Business Organization

Introduction
The term business environment is defined as the
external institutions, factors and forces that are not
in control of the business entities and may influence
and affect the operations of the organization. There
are different internal factors which also affect the
working of businesses which includes the
government, customers, suppliers and competitors.
Nowadays the business environment has become
dynamic in nature due to rapid changes in the
working style in changing time and demand of the
society. This PPT Poster is based on the company
Tesco, a general merchandise company which deals
in retail industry. This PPT poster shall cover the
relationship of the business with the external
environment
Internal and External factors
Internal factors
Internal factors are concerned with the strength
and weaknesses of the company which impacts
the working of the business in order to achieve
its goals and objectives. Some of the internal
factors that affect the operations of Tesco are
narrated below -
• Organizational culture
• Funds and resources
• Vision and mission statement
• workforce
How external and internal
factor affect business
organization.
External factors
External factors generally comprises of those
influences, situations and circumstances that is
beyond the control of company that also affects the
decision making of it. There are different external
factors which directly affect the ability of the
business to achieve its organizational goals. In
relation to Tesco, the external factors that affect the
business organization are discussed below
• Political
• Economic
• Social
• Technological
• Legal
• Environmental