Topic 6 - Internal Factors

Question 1

Finance

Answer 1

Possible situations may arise if there is not enough finance in the business.

The business may not be able to:
- Expand
- Hire new staff
- Market products
- Develop products

The business may have to:
- Make staff redundancies
- Remove a layer of management
- Find new sources of finance

Question 2

Staff

Answer 2

Managers:
- Effective leadership of staff
- Motivate staff
- Manage finances correctly
- Recruit train and manage staff effectively
- Level of risk
- Delegate responsibility and tasks to staff
- Effective decision making

Employees:
- Productivity
- Motivation and commitment to the business
- Develop skills through training
- Industrial action
- Level of attendance and absenteeism
- Quality of service

Question 3

Technology

Answer 3

• Breakdowns can be catastrophic
• Loss of face-to-face communication may demotivate staff
• Lack of technology can leave business behind its competitors
• Expensive to install and replace
• Staff need to be trained

Question 4

Corporate Culture - Methods

Answer 4

• Office layout
• Corporate colours
• Training programmes
• Incentives and rewards
• Logos, slogans and mottos
• Flexible working arrangements
• Company values

Question 5

Corporate Culture - Advantages

Answer 5

• Open plan offices encourage communication, creativity and idea sharing
• Employees are happier and feel valued by the organisation
• Flexible working arrangements allow staff to work when and where they are most productive
• Attracts customers
• Attracts high quality staff
• Increases employee loyalty
• Decreases staff absenteeism and turnover
• Rewards can motivate staff