Internal Factors

• What are internal factors in a business?

  Factors within a business that can be controlled
• What are the main internal factors affecting a business?

  Corporate culture, staffing, finance, technology
• How is corporate culture defined?


  As the way things are done around here
• What does corporate culture encompass?

  Attitudes, beliefs, values, and norms shared by employees
• What are the benefits of a strong corporate culture?

  • Increased staff loyalty and reduced turnover
  • Enhanced staff motivation and performance
  • Attraction of high-quality staff and improved service
  • Positive brand association with customers
• How does corporate culture affect staff loyalty?

  It makes staff feel they belong to the firm
• How can corporate culture impact customers?

  It can enhance brand perception and profits
• What is a potential cost of developing corporate culture?

  It can take a long time to develop
• Why is it difficult to change a corporate culture?

  Because it becomes embedded over time
• What can happen if staff are uncomfortable with corporate culture?

  It may lead to less creativity in the business
• What does human resources relate to in a business?

  The people who work in the organization
• How can managers influence a business?

  Through decision-making, policy creation, and hiring
• What is the impact of good decision-making by managers?

  It can increase productivity and profits
• What role do managers play in hiring and firing?

  They recruit new staff and let others go
• What is the purpose of conducting appraisals with staff?

  To assess staff effectiveness and performance
• How can employees influence a business?

  Through productivity, motivation, and skills
• What are the consequences of badly performing employees?

  Negative impact on sales and reputation
• What areas can employee performance impact?

  Productivity, customer satisfaction, and absenteeism
• What are the roles of managers and employees in a business?

  Managers:

  • Decision-making
  • Creating policies
  • Hiring and firing
  • Setting budgets
  • Conducting appraisals

  
  

  Employees:

  • Productivity
  • Customer satisfaction
  • Skill set performance
  • Training and motivation
  • Availability
• What is essential for a business to survive?

  Adequate finance
• Why does a business need adequate funds?

  To survive and grow successfully
• How do changing customer needs affect businesses?

  Businesses must adapt to meet new challenges
• What might a business do to respond to changing customer expectations?

  Introduce new versions of successful products
• Why do restaurants change their décor?

  To meet changing customer expectations
• What is one reason businesses need finance?

  To develop new products
• What is another reason businesses require finance?

  To upgrade new software
• What is a reason for needing finance related to employees?

  A wage rise for existing employees
• What is a reason businesses need finance for staffing?

  Hiring new staff
• What is a marketing-related reason for needing finance?

  An advertising campaign for a product
• What is a reason businesses might need finance for physical space?

  Extending existing premises
• What is a reason businesses might need finance for transportation?

  Buying a new fleet of vehicles
• What is a reason businesses might need finance for expansion?

  Opening a new branch
• What is a reason businesses might need finance for equipment?

  Buying new machinery and equipment
• How can a business obtain finance from a bank?

  Through a bank loan or commercial mortgage
• What must be done with a bank loan or commercial mortgage?

  It must be paid back with interest
• What is another source of finance for businesses?

  A grant from the government
• How does the amount of finance affect a business?

  It directly affects hiring and equipment purchases
• What happens if a business works within budget constraints?

  It may struggle to hire or buy equipment
• What are the consequences of inadequate finance for a business?

  It can adversely affect growth and success
• What do businesses need to survive and grow successfully?

  Adequate funds