Internal EnvironmentThe internal environment refers to corporate culture, values and business ethics. Internal environmental factors are events that occur within an organisation (Study.com). Generally speaking, internal environmental factors are easier to control than external environmental factors. Some examples of internal environmental factors are as follows:
Organisational and operational
This refers to the operational and administrative procedures. Interruptions to the supply chain and outdated or faulty IT systems are also factors which could evaluate (leoisaac.com). If these are not overcome, the customers might see the company as unreliable which can cause a lose all of data. Strategic risks
This specific internal aspect could effect the company to reach its goals within the business plan. This is due to the impacts of change in technological evolutions or customer demand. These factors could significantly cause threats as it could alter the way the companies customers perceive the products. Based on these, customers might think a product is overpriced, dull and outdated (Leoisaac.com). Financial
Financial risks can depend on the financial structure of the business. The transactions and finials systems are also a dependent factor. For example, changes in interest rates or being overly reliant on one customer could affect business (Leoisaac.com). |
Innovation
Innovation is needed within a business in order to keep up with competitors. Innovation can come in the form of marketing, promotional initiatives in the marketing plan, staff training, and welfare (Leoisaac.com). Without innovation it can pose a serious risk to the growing business. No innovation can cause a company to radian boring and become dull, stagnant and irrelevant. Employee risks
Employees are also a vital park of the success of the business. However despite this there are many ricks associated with them. For an industry, strike action could lead to a lot of problems (Leoisaac.com). |