Analysis of Internal and External Factors in Business Report

This report examines the internal and external factors that impact business operations. It begins by defining key terms such as internal factors, which include elements like human resources and finance, and external factors, such as political and social influences. The report highlights the significance of collaborative working practices and how they contribute to organizational success, using John Lewis as a case example. Internal factors are explored in detail, with a focus on financial considerations and the crucial role of human resources in achieving business objectives. External factors are also analyzed, with attention given to political and social influences, and how they affect business strategies. The report concludes by summarizing the key factors discussed and emphasizes the importance of thorough evaluation for effective business planning. The references section provides sources for further reading on the subject.

Introduction to Business
studies
(LO2 and LO3)

Table of contents
Introduction
Collaborative working practice
Internal factors
External factors
Conclusion
References

Introduction
Internal Factor is factor that exist within the organisation and influence
the components of company such as HR, Finance. External Factor is
termed as factors that involve factors that were outside the company and
impact the working of company such as Political, Economical and
Technological Factor.

Collaborative working practice
Working practices concern with creating better environment in
company through better communication and understanding the needs and
requirement of people working in organisation. John Lewis is also
focusing on creating better working condition for employee so that they
feel encouraged and motivated in their work and give best output.

Internal factors
It concerns with factors that can be controlled by business and exist
within the organisation. Some internal factors that impact the working of
John Lewis such as
Finance- It termed as important thing that every organisation activity is
carried out by the availability of optimum capital and all strategies
and plan are form after proper analysing of capital. In John Lewis
Finance factor play major role in planning different operational
policies that required to be implement in company.

To be continued..
Human Resources- It refers to utilisation of employees capability at
optimum level and maintaining the people relationship in business.
This factor in John Lewis is necessary in organisation and it impact
the organisation as it decides success and failure in business. If
employees are organised and motivated they were able to perform
well and achieve its target effectively.

External factors
It consist the factors which are external in nature and affect the
working of company to larger context. Some factor that influence the
operation of John Lewis are
Political Factor- This factor include Income tax, exchange rate and
interest rate in country and how it influence. John Lewis is operating
in different countries like UK, China so company has to regulate its
policies and plan according to the condition that is prevailing in
respective country.

To be continued..
Social Factor- This consist of social behaviour, taste and preferences of
costumer is influence the business of organisation. Like John Lewis,
is functioning is certain countries so firm required to identify the taste
and choices of costumer and accordingly deliver them with same
product.

Conclusion
In above presentation we concluded that Internal factor and external
factor affect the business of company. Organisation need to evaluate the
both factor carefully and study them thoroughly. Internal Factor that were
taken is HR, Finance and External Factor were Political and Social
Factor.

References
Books and Journal
Ramli, N., Muljono, P. and Afendi, F. M., 2018. External Factors, Internal
Factors and Self-Directed Learning Readiness. Journal of Education
and e-Learning Research. 5(1). pp.37-42.
Zinovieva, C. G. and et.al., 2016. Study of external and internal factors
affecting enterprise’s stability. Advances in Systems Science and
Applications. 16(1). pp.62-71.

Thank you