Internal Factors

Question 1

What are internal factors?

Answer 1

Influences within the control of the organisation which will affect how it operates (inside the business)

Question 2

What are the 3 internal factors?

Answer 2

Availability of finance
Human resources (employees and management)
Current technology

Question 3

What is availability of finance?

Answer 3

The amount of money a business has available.

Question 4

What is human resources (employees and management)?

Answer 4

The ability/skills of employees/management within the organisation.

Question 5

What is current technology?

Answer 5

The technology/ICT that an organisation currently has available to use.

Question 6

What are some examples of availability of finance?

Answer 6

If a business has a lot of finance available it will be able to hire the most qualified/experienced employees.
If a business doesn’t have a lot of finance available it may be unable to pay bills on time.
If a business doesn’t have a lot of finance available it may have to purchase lower quality raw materials for their products.

Question 7

What are some examples of human resources?

Answer 7

If employees are highly skilled they may be able to produce a higher quality product.
If employees are highly trained they will be able to offer good customer service.
If management is highly experienced it will make better decisions for the organisations (e.g. who to hire ; how to grow the business)

Question 8

What are some examples of current technology?

Answer 8

If an organisation has up-to-date technology/ICT it will be able to produce products to the highest specification.
If an organisation has up-to-date technology/ICT it maybe able to sell to customers online (e-commerce)