The Influence of Internal and External Factors on Business Performance

This report examines the influence of both internal and external factors on business operations. It begins by defining these factors and their impact, highlighting how they shape a company's performance. The report discusses the importance of understanding the business environment and analyzes how internal elements, such as employees and management, and external elements, such as market forces, influence the overall success of a business. The report also includes a review of relevant literature, providing a comprehensive overview of the topic. The report concludes by emphasizing the need for businesses to strategically address both internal and external factors to achieve sustainable growth and success. The report is contributed by a student and is published on the website Desklib, a platform providing AI-based study tools for students.

Introduction
Organizations survives and operates within the society, for
the society and by the society members. The society is
backed by the certain factors and forces of the environment
so every company has to face and survive in the prevailing
environment. The environment involves some factors which
may be internal and external and creates some impact on the
business operations and its success.
Internal and External factors
External
Environment
External environment refers to the factors which
builds an impact on the performance of the business
organizations from outside the walls of company.
These factors affects the operations at a large scale
that is macro level and is uncontrollable in nature by
the business management.
How the company
impact its context
External Environment
Every business exists in the environment and of whose resources
the companies uses in their operation's. Business and environment
both are inter-related to each other and are inseparable too. Unlike
the external environment creates an impact on business, business
also creates an impact on environment.
Internal Factors
Internal factors of environment are those which born inside
the boundaries of the company and impacts the business at a
small scale that is micro level. The factors only effects the
operations of business individually not to the industry as a
whole.
• Employees
• Management
References
Darchen, S., 2020. Contextual and external factors enabling
planning innovations in a regeneration context: the Lyon
Confluence project (France). International Planning
Studies. 25(4). pp.340-354.
Dvorsky, J., Sopkova, G. and Janoskova, M., 2017. Evaluation of
the social environment and access to financial resources for
business: case study of the Czech and Slovak
Republic. Ekonomicko-manazerske spektrum. 11(1). pp.62-73.
HASBI, and et.all., 2020. Analyzing of External Environment
Force and Islamic Business Ethics on Baitul Maal Wat Tamwil
Performance through Organizational Commitment. Journal of
Applied Economic Sciences. 15(1).
Holtskog, and et.all., 2018. Culture: Internal Business
Contradictions. In Learning Factories (pp. 83-101). Palgrave
Macmillan, Cham.