Internal and External Factors: Impact on Business Organization

Introduction
The business environment can be connoted as the external
forces, institutions and factors which are beyond the control
of business and affect and influence the working of company.
There are many internal factors also which affect the working
of companies and these includes the competitors, customers,
government, suppliers, etc. . The environment in which a
business operates is dynamic in nature as it changes with
changing time and needs of the society. It is not static but
rather it is complex and changeable. The organization chosen
for this report is Sainsbury which is a supermarket chain
dealing in retail industry. It was founded in the year 1869.
This report shall cover the relationship of business with its
external environment
Internal and External factors
Internal factors
Internal factors include the strength and
weakness of the business which affects as to how a
company can meet its objectives. Some of the internal
factors which affects the business of Sainsbury are
discussed below-
Finance and resources
Organizational culture-
Employees and managers
Vision and mission statement-
How external and internal
factor affect business
organization.
External factors
External factors consist of those circumstances,
influences and situation which is beyond the control of
business which affects the decisions of business made by
owner and its stakeholders. There are many external factors
which have direct impact on ability of business to
accomplish its objectives.
Political
Economic
Social
Technological
Legal
Environmental