Impact of Internal & External Factors on Business Development

This report explores the influence of internal and external factors on business development, defining group work and creativity as foundational elements. It presents an analysis of internal factors using SWOT and VRIO frameworks, highlighting strengths like brand image and weaknesses such as the need for technological investment. Opportunities like online business expansion and threats like liability laws are also examined. The report further describes external factors through the PESTEL framework, covering political, economic, social, technological, environmental, and legal aspects, alongside Porter's Five Forces to evaluate industry structure. The conclusion emphasizes the importance of balancing internal and external factors for sustained market presence, summarizing the analytical tools used to control the impact of these environments, ultimately aiding in predicting future opportunities and threats. Desklib provides access to similar solved assignments for students.

GROUP WORK, CREATIVITY
AND CONTENT

TABLE OF CONTENTS
 INTRODUCTION
 MAIN BODY
 PRESENTING INTERNAL FACTORS OF THE BUSINESS
 DESCRIBING EXTERNAL FACTOR
 CONCLUSION
 REFERENCE

INTRODUCTION
 Group work can be defined as a voluntary association of an
individual that work towards accomplishing a common goal.
 In simple, words it can be state as formal cooperative learning of
team where each member is delegated with the task so that team
is effectively able to achieve the objective at specific time.
 Whereas as creativity can be described as a method of generating
innovative ideas that can be used to solve the conflicts or
entertain other.

PRESENTING INTERNAL FACTOR OF
BUSINESS
 Internal factor can be state as those factor that can be control
by the company such as corporate culture, staffing, finance
and technology.
 All this element affects the business in positive and negative
manner.

SWOT
 SWOT: This is a strategic planning that helps the company in identifying
their strengths and weakness and at the same time it helps firm in examine
the internal threat.
 Strengths: Good brand image and strong distribution network are
strengths of the company as it allows the firm to expand their business
globally.
 Weakness: The major weakness that organization is facing is that it need
more investment in new technology such as digital technology and
marketing likewise
 Opportunity: BETFRED has various opportunity for enhancing their
business such as online business likewise Instagram, official website and
Facebook.
 Threats: The major threat that BETFRED is facing is liability law in the
various country

VIRO
 This can be defined as a business framework that allows the company
in identifying the resources and the capability of the firm Valuable:
The company has various quality resources such as alignment of the
activities the firm generally make a schedule before conducting their
activities.
 Rare: The second step allow the firm to identify the resources that
are rare and make the firm unique in the completive environment. The
customer network and loyalty.
 Imitation: The cost competitiveness of the firm can be imitating by
the competitor.
 Organization: The company is mainly using their resources in the
organized manner so that it can take proper advantage by making
proper utilization of the resources.

DESCRIBING THE
EXTERNAL FACTORS
 It can be defining as the group of factor that affect the business from the outside and are not in
control of the business.
 PESTEL: This can be state as strategic tool that help the organization in identifying the
macro factor that are affecting the overall growth of the business.
 Political: It mainly include the government policies such as tax rate and trade restriction
 Economic factor: This mainly include economic growth, inflation, wage rate and
unemployment that affect the business adversely
 Social: It mainly consist of culture norms, population growth, age group and income Static
of the customer
 Technological: This mainly include production techniques, e- commerce marketing
 Environmental: It is consisting of factors like pollution and population growth.
 Legal: This include the various laws that has been made by the government such as

PORTER FIVE FORCE
 Porter five forces model is widely use in order to evaluate industry structure
and corporate strategies
• Rivalry among the existing competition: It is the most important factor
which Betfrd need to analyse in order to survive for the long term in the
market.
• Supplier Power (Medium): Supplier power determine how easily supplier
can increase the prices of the product.
• Power of customer (High): It is also required to analyse the bargaining
power of the Betfrd in order to maintain the sustainable growth of the
company.
• Threats of New Entrants (High): As new company enter into the market
which increase the competition and reduce the profit.
• Threat of substitute product (Low): Betfrd need to evaluate substitutes of
their product and services it is because to determine the price of the available
product.

CONCLUSION
 From the above report it can be conclude that the external and internal factor positively and negatively affect
the development of the firm.
 The company has to make balance between them in order to sustained in the market.
 Moreover, the report has summarized about the analysis tool that help the business in controlling the impact of
external and internal environment.
 such as SWOT, VIRO, PESTEL and Porter five force. Furthermore, SWOT helps the organization in
predicting the overall the future opportunity and threat.

REFERENCES
 Books and journals
 Abdel-Basset, M., Mohamed, M. and Smarandache, F., 2018. An extension of neutrosophic
AHP–SWOT analysis for strategic planning and decision-making. Symmetry. 10(4). p.116.
 Ariwibowo, P., Saputro, F. B. and Haryanto, H., 2021. Analysis of Strength & Weakness,
Using the Concept of Resource-Based View with the VRIO Framework in Sharia
Cooperatives. Jurnal Manajemen Strategi dan Aplikasi Bisnis. 4(1). pp.279-294.
 Ariyani, W. and Daryanto, A., 2018. Operationalization of Internal Analysis Using the VRIO
Framework: Development of Scale for Resource and Capabilities Organization (Case Study:
XYZ Company Animal Feed Business Unit). Asian Business Research Journal. 3. pp.9-14.