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Business Management: Understanding Business > Internal Factors > Flashcards

Flashcards in Internal Factors Deck (11)
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1
Q

What are internal factors

A

Internal factors are the things which affect a business from the inside.

2
Q

What is human resources and how do they affect a business?

A

HR relates to the people who work in a business. The performance of a business is affected by the quality and impact of the people who work for it.

3
Q

How do managers affect a business?

A

Decision Making: good decisions can increase productivity, profits and make the business grow. Poor decisions can result in employees losing motivation which can cause a disruption in production and/or complaints from customers, which can also lead to an impact of public reputation and sales.

Creating policy: managers create policies that aim to motivate employees and set realistic goals.

Hiring and Firing up Employees: managers recruit new staff and let others go.

Setting budgets: managers will decide how much a business can spend within a specific period.

Conducting appraisals with staff: managers need to asses their staff to ensure they’re working effectively.

4
Q

How do employees influence a business?

A

Training: a well trained employee fulfils their role efficiently and is an asset to the company; a badly trained one can be incapable of performing basic functions, such as interacting with customer, and are detrimental o the organisation.

Morale: low morale or motivation can lead to poor customer relations impacting on a business’ sales and profit levels.

Productivity

Absenteeism

Ability to perform their job

Training: business can directly improve skills by providing on-the-job or off-the-job training.

Industrial action: bad reputation

5
Q

What are some reasons for using finance in a business?

A
  • developing new products
  • a rise in wage for existing employees.
  • hiring new staff
  • an advertising campaign for a product
  • extending existing premises
  • opening a new branch
  • buying new machinery and equipment
6
Q

How does a lack of finance effect a business?

A
  • couldn’t open a new branch
  • couldn’t develop new products
  • couldn’t hire new staff
  • no money for advertising ( can’t attract customers)
  • cannot buy stock
  • couldn’t extend existing premises
  • cannot upgrade equipment
  • cannot expand.
7
Q

How does poor quality technology affect a business?

A
  • loss of customers
  • can’t keep up with customers ever-changing requirements
  • can’t rely on access or control of social media
  • slower production
  • breakdowns
  • high cost of maintenance/repair
  • falling behind their rivals
8
Q

How does poorly trained or demotivated staff affect a business?

A
  • poor image/reputation
  • loss of customers
  • less revenue
  • poor quality employees-bad service or bad products
9
Q

What’s a corporate culture?

A

This means the values, benefits and attitudes within the company which guide its activities, policies and interactions with stakeholders.

10
Q

What are the features of a business culture?

A
  • business would have a uniform or a dress code
  • rules/policies
  • hierarchy; management structure and power
  • brand identity; logo, corporate colours, office layout.
11
Q

Types of decisions

A

Decisions in business can be classified into 3 type:

  • STRATEGIC DECISION: the most important decisions concerned with setting the objectives of the business.
  • TACTICAL DECISION: concerned with implementing the strategic decisions.
  • OPERATIONAL DECISIONS: concerned with the day to day running of the business.