Business in Practice: Internal & External Factors on Organisation

This essay explores the significant impact of both external and internal environments on business operations, emphasizing their role in achieving organizational success. External factors, which are beyond the control of the business, include political, economic, social, technological, legal, and environmental elements. Internal factors, on the other hand, encompass human resources, financial aspects, and management practices. The essay highlights the importance of recognizing these factors to gain a competitive edge in the marketplace and achieve profitability. Using Tesco as an example, the analysis underscores the necessity of focusing on business functions at a global level to navigate these complex environments effectively. The provided references support the discussion on managing business practices and understanding the effects of internal and external factors on organizational buying behavior.

Introduction
External and internal environment is very important terms
within organisation because it provide significant impact on
operations of business that is used to lead the company to
gain high opportunity success
BUSINESS IN PRACTICE
External factors
External factors is defined as that extrinsic factor which
are not in a control of business and on the same way it
directly affect the organisation function.
• Political factors
• Economic factors
• Social factors
• Technological factors
• Legal factors
• Environment factor
Internal factors
Internal factors define several factors that are accumulated
with the companies and also it can be tangible and intangible
in context.
• Human resource
• Financial factor
• Management
References
Huntington, J., Gordon, P. and Plamping, D., 2018. Managing the Practice: whose business?. CRC Press.
Inoni, O.R., Salami, C.G.E. and Olannye, A.P., 2019. Effects of Internal and External Factors on Organizational Buying
Behaviour: A Review of Extant Literature. Izvestiya, (3), pp.216-237.
Karpenko, L. and et. al., 2019. Formation of the system of fair business practice of the company under conditions of
corporate responsibility. Academy of Strategic Management Journal. 18(2). pp.1-8.
How the company impacts
its context external
environment
In order to accomplish the competitive edge within market
place it is very important to recognise the internal and
external factors so that high success opportunities are
attained and accomplished so that profitability should be
cherished. In terms of Tesco, this company is focus on
business functions at global level.
Impact of internal and external factors