Business Operations: Internal and External Factors Analysis

This homework assignment provides an analysis of the factors that significantly influence business operations. It begins by exploring the importance of collaborative working practices, highlighting their benefits such as increased innovation, enhanced learning, improved productivity, and stronger stakeholder relationships. The assignment then delves into the specific internal and external factors that impact a company's performance. Internal factors discussed include human resources, interpersonal relationships, technology and capital resources, and financial forecasting, emphasizing the importance of proactive management in these areas. External factors examined encompass customers, suppliers, competitors, and government regulations, underscoring the need for businesses to adapt to market dynamics and external pressures. The assignment concludes with a list of references, providing sources for further study and research on the subject.

INTRODUCTION TO
BUSINESS

The term Collaboration is considered to be of much importance in the
workplace when two or more employees work together by sharing ideas, thoughts and
have same thinking to achieve common goal. Company having high collaborative
level capacity enables more effective operation at daily level which helps in
achievement of viability for long-term period. With collaborative working practices, a
business can seek following benefits:
 Increase in the innovative and creativity level of employees resulting in out of
the box thinking for solving an issue easily and speedily.
 Helps employees in increasing their learning skills and development part
apart from education as pursued by them (Grove and et.al., 2018).
LO 2 Collaborative working practices

 With collaborative practices, employees of the company get mainly
benefited as it helps them in increasing their individual productivity and
motivates them to work in more efficient manner.
 By having collaborative work force, it enhances stakeholder relationship.
Also, it can help in creation of high synergy level with all other business
departments, suppliers, vendors and customers.
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On conducting business operations smoothly, every company has to face
difficulties at both internal as well as external level. For overcoming some factors, a
business should formulate strong plans, strategies in line with its business objectives.
 Internal Factors – Arises within company and can be control with proper plans of
actions. It includes:
 Human Resource – Less motivated, untrained employees are always
harmful for the company as it directly affects the overall profitability and
productivity of the company. With proper learning and training, situation
can be changed.
 Inter-personal Relationship with employees – Company should always
keep its employees stake at priority basis (Toppinen and et.al., 2019).
Sound relationship with employees can help company in surviving and
growing for long term period.
LO 3 Factors affecting business operations

 Internal Technology and capital resources – A company should always ensures that
it is adopting latest and updated technology for increasing its operational efficiency.
Internal technology on which company’s operations are based should be checked
from time to time and if required change with proper allocation of capital resources
 Financial Forecast – Sometime budgeting creates huge impact on the working of
company (Damanpour, Sanchez‐Henriquez and Chiu, 2018). If a business firm is
not having projected budget made with its distribution, it can result in inter
departmental conflicts.
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 External Factors – Are those elements which are affecting business operations from
outside and are under no control of the company viz.
 Customers – Profit of company mainly depends on the demand range of
its customers in the market. On not understanding of customers
expectation, graph of customer retention will goes down with negative
returns (Vartiak, 2016).
 Suppliers – Business mainly depends on suppliers movement, changes
in it can affect pricing and other business operations which will directly
impact supply function.
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 Competitors – A company should always be prepared to change as per
competitive market trends. Unwillingness to change can negatively
influence company due to uninterested investors, high market
expectations, competitive price, customer disloyalty etc.
 Government – Any changes made therein by the government directly
contributes to business productivity and development. It is therefore very
much important for a company to keep pace with current rule and
regulations as implemented by the government in area of business
operations.
TO BE CONTINUED

Books and Journals
Damanpour, F., Sanchez‐Henriquez, F. and Chiu, H. H., 2018. Internal and external sources and the adoption
of innovations in organizations. British Journal of Management. 29(4). pp.712-730.
Grove, E. and et.al., 2018. Becoming collaborative: a study of intra-organisational relational
dynamics. Journal of Financial Management of Property and Construction.
Toppinen, A. and et.al., 2019. Internal and external factors of competitiveness shaping the future of wooden
multistory construction in Finland and Sweden. Construction Management and Economics. 37(4). pp.201-
216.
Vartiak, L., 2016. IDENTIFICATION OF INTERNAL AND EXTERNAL FACTORS AFFECTING
BUSINESS EXCELLENCE.
Online
How Internal and External Factors Drive Organizational Change. 2019. [Online]. Available through: <
https://www.googlesir.com/internal-and-external-forces-affect-organizational-change/>.
REFERENCES

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