Internal factors relate to aspects within an organization that are generally controllable, such as its value system, management structure, human resources, company image, physical assets, research and development capabilities, marketing resources, and financial resources. These internal factors directly impact the organization and can be altered or modified by management. Examples provided include organizational structure, composition of the board of directors, employee policies, and reputation.

1. -Internal Factors

2.  Divya
Dalwani 07
 Maitri Devi 10
 Bhumita Sarabhai 46
 Harshil Shah 49
 Vatsal Shah 55

3. Business
Environment
External
Factors
Micro
Factors
Internal
Factors
Macro
Factors

4.  It
relates to all aspects within the boundaries of
the organization and generally are within the
control of top management team.
 Direct impact
 Controllable by the company
 Alter or modify

5.  Value
system
 Mission & objectives
 Management structure and nature
 Human resources
 Company image and brand equity
 Other factors:
•
•
•
•
Physical assets and facilities
R & D and technological capabilities
Marketing resources
Financial resources

6. • Value System of founders and those at the helm of affairs has
•
•
•
•
important bearing on
Choice of business:
Mission
Objectives of the organization
Business policies and practices

7. Factors
 Organizational structure
 Composition of the Board of Directors
 Extent of professionalization of
management

8. Centralized
Decentralized

10.  Support
to Top Management from other
Stakeholders
 Relationship between Members of BOD
 Relationship between CEOs
 Relationship between BOD and CEO

11. The characteristics of the human resources
like skill, quality, morale, commitment,
attitudes etc. could contribute to the strength
and weakness of the organization.
The involvement, initiative etc. of the people
at different levels may vary from organization
to organization.

12.  Various
HR policies
 Employee retention techniques
 Selection criteria
 Training and development
 Disputes
 Public relations
 Issues: selecting right people, offering
competitive compensation packages and
payroll taxes

13.  Describes
 Serve
the purpose
the needs of customers
 Identifies
 Answers
various intents of the company
various questions

14.  Reputation
 Important
 Value
of the company
dimension
premium
 Memorable,
recognizable and reliable

15. 1)
PHYSICAL ASSETS AND FACILITIES :
•
•
•
•
Inventories
Cash
Equipment
Properties owned by the business
POWER PLANT
JUST IN TIME

16. 2)
R/D AND TECHNOLOGICAL CAPABILITIES :
Advantage :
•
•
•
•
Disadvantage :
Competitive edge
Enhance brand and reputation
Overseas market
Increase profitability
High cost involvement
Long time scale
Uncertain outcome

17. 3)
MARKETING RESOURCES :
•
•
•
Marketing Research
Channel Management (Intermediaries)
Marketing Strategies.

18. •
•
•
Procurement Of Finance.
Meeting working capital needs.
Allocation of finance.