Report on Internal and External Factors Impacting Business Services

This report provides an overview of the internal and external factors that influence the operations of a new food catering business. It explores key internal elements such as employees, managers, company culture, money, and resources. The report also analyzes external factors like competition, customers, suppliers, and government policies. Furthermore, it discusses the significance of HR, marketing, and finance functions, including financial management and reporting within the organization. The conclusion emphasizes the importance of effective management to ensure smooth business operations and highlights the role of financial performance as a key indicator of organizational success. The report references several academic sources to support its findings and provides a comprehensive understanding of the business environment.

Introduction to business services

Introduction
 The following report includes the scenario in which new food
catering service is opened. This consists of strategic planning and
vision and mission of the company. This explains the internal and
external factors that affects the business operations. This
provides a description for role of HR, Marketing and finance
functions within organisations. Also there is discussion for role of
financial management and reporting within the organisation.

Internal and external factors which impact on business
 There are various factors that affect the running and functioning
of business processes. This may include the following elements -
 Internal factors – Employees and managers
Money and Resources
Company culture
 External factors - Competition from other businesses
Politics and government policy
Customers and suppliers

Internal factors
 Employees and managers – Employees are one of the most
important part of the internal environment of a company (Ali,
Warren, and Mathiassen, 2017). It is essential for the employees
to be good while working. All the executives and managers must
know how to manage and handle lower level employees and
oversee all the parts of internal environment.
 Money and Resources – When there is lack of money then
business are not able to earn profits and make money. For a
business, it is very important to have many cash resources. This
affects lot of people who are hired. Good money will help in
advertising the products effectively and having good quality of
equipments.

Cont…
 Company culture – The internal culture of the business includes
various values, priorities and attitude of employees that are
working in the company. It is essential to maintain positive
culture at workplace as it is helpful in managing the efficiency
and working of employees. Staff and workers of the company
must have good values and it is important to hire, promote or fire
employees.

External Factors
 Competition from other businesses - It is very important for
the business to be unique if it wants to deal with fierce
competition in market (Briggs, Landry, and Daugherty, 2016).
When companies are started, there is need for fighting against
established and more experienced businesses within the industry.
 Customers and suppliers - These are also an important
factors while running any business. Suppliers are having major
impact on the people who are involved in dealing with business
operations. The customers of the company must be convinced by
the services that are provided to them.

Cont…
 Politics and government policy – The changes within
government policy are having huge effect on the business. An
example of this is tobacco industry (Roberts, 2018). The
cigarettes are provided to customers by a warning on the
packet. There are also very few places where people can smoke
legally.

Conclusion
 From the above discussion, it is analysed that there are various
internal and external factors that affect the functioning of the
company. Also, it is concluded that for having smooth running of
business, it is essential to have proper management and
handling of all the departments. The financial performance of the
company reflects the performance level of the organisation.

REFERENCES
 Ali, A., Warren, D. and Mathiassen, L., 2017. Cloud-based business services
innovation: A risk management model. International Journal of Information
Management, 37(6), pp.639-649.
 Briggs, E., Landry, T.D. and Daugherty, P.J., 2016. A framework of
satisfaction for continually delivered business services. Journal of Business &
Industrial Marketing.
 Roberts, J., 2018. Multinational business service firms: development of
multinational organization structures in the UK business service sector.
Routledge.
 Wei, L.H., Thurasamy, R. and Popa, S., 2018. Managing virtual teams for
open innovation in Global Business Services industry. Management Decision.
 Willcocks, L.P., Lacity, M.C. and Sauer, C. eds., 2017. Outsourcing and
offshoring business services. Springer.

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