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Custom Business Internal and External Influences essay paper sample

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There are various internal and external issues that control businesses operations; Internal factors are business culture, location, product or service, resources, and management. If these internal factors are well handled, the business will succeed. Strengths and weaknesses are within the control of the business. Threats and opportunities are internal factors, which are not in control of the business but can be guided by the business strategies. External factors influence the extent to which clients will visit the business. The external factors include technologies, economic influence, political, social influences, financial, institutional, markets and competition situations.

Internal and external factors

Internal influences of a business involve organizational of resources to accomplish its objectives. Resources in a business include the financial, human, technological, and the physical resources. Availability of adequate finances, use of technologies and human skills effectively, and exhaustive exploitation of physical resources are factors influencing success in a business. The management task is to obtain these resources and make effective and proficient use of them within a business. In business, management is in competition with other business how effective it is, is a plus to success efforts. These business resources are very scarce; management accomplishment depends on how best they are acquired and used.

Business culture determines success of it; in that, every business has particular targeted customers, and if this is not well analyzed; business will fail. Location of the business determines the accessibility to raw material and resources, also determine customers availability. Product or services offered by the business are also influential to success of it; this is possible if market analysis is done.

Sociological is an external factor which includes; the geographical trends and status, personal values, general ethics and work ethics. Each country has unique social environment and the business management must put this into consideration when it goes international. Having this information can assist the management to design products for the right customers and plan for the future.

Political and economic include the essential factors in business such as customers, suppliers, and competitors. The management ought to analyze the political and economy environment for a dynamic and continual relationship. By analyzing customers, the business' suppliers, and competitors in conjunction with current political factors, the business management can make effective managerial and decisions ensure its' success (Smith 2009-2011). For a product to succeed in the market place, it must posses form, place, and time utilities.

Technology has enormous and dramatic effects on business; this is so because changes in the external environment are always felt by the business. The management must be in a flexible position in order to adapt to various abrupt changes that could occur over night in the market. Technology refers to applicable techniques, which ease operations in the business. Diversity and ethics are other external factors that influence business. Diversity considers the difference in people and culture in regard to business, whereas ethics is concern with doing the right thing. For the world market, globalization is an important aspect for survival and successful growth of the business.


Internal and external factors affect business in various perspectives. Success or failure of a business is attributed to either effective or poor management of these factors. Management is a very important factor in business because it decides the future and extent of growth to any commercial activity. These factors work hand in hand, for a success, both internal and external issues must be considered in relation. Ethic is a controversial factor in business. Business sometimes requires exhaustive exploitation of resources for a business, yet this could be disadvantageous to others. Aspect of competition also clashes with ethics requirement.

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