This document discusses the internal environment of a boutique chain called Elegant Outfits located in Saudi Arabia. It identifies five key internal factors: customers, shareholders, competitors, employees, and financial institutions. It also examines how these internal factors affect the management processes of planning, organizing, staffing, communicating, and leading. Finally, it concludes that effective management requires rational assessment, goal-setting, resource allocation, and adaptation to changes in the internal and external environment.

1. 1Page 1 of 11
MODULE: W10007
2013
MANAGEMENT
STUDENT NAME: Afrah A.Sheikh
LECTURER:
STUDENT ID:

2. Page 2 of 11
TABLE OF CONTENTS:
Introduction to Boutique” Elegant Outfits “ ...........................................................3
What is business environment?................................................................................4
Internal Environment... ............................................................................................4
 Customers ....................................................................................................5
 Shareholders.................................................................................................5
 Competitors... ...............................................................................................5
 Employees... .................................................................................................6
 Financial institutions... .................................................................................6
Factors affecting the management process………………………………………...7
 Planning .......................................................................................................7
 Organising ....................................................................................................7
 Staffing.........................................................................................................8
 Communication ............................................................................................8
 Leadership ....................................................................................................9
Conclusion ......................................................................................................... 9-10
Reference ...............................................................................................................11

3. I am a manager of an international boutique chain in my area. The name of my
boutique is Elegant Outfits and it is located in downtown of main Ad Dammam city,
Saudi Arabia in the Middle East region. In Elegant Outfits we offer a variety of
trendy eastern and western clothes, and have made two separate sections for each.
We are honored to serve the people with the latest fashion in affordable range.
Elegant Outfits is a blended textile unit –making everything from cotton yarn to
fine finished products with great quality, variety and sizes.
On the retail front, Ideas by Elegant Outfits offers fabrics and made-ups, ranging
from home accessories to clothing. It not only caters fashion at great value, but also
indulges to various customer needs by contributing a diverse product mix leading to
a complete and enjoyable retail skill. As a consequence, the chain has expanded to
14 stores across the Middle East since its outset in 2013.Despite all the struggling
with margins, Elegant Outfits has expanded within and outside departments. We
now operate in Women, Kids and Menswear territory. Our cotton fabrics are gone
from a basic product to a fine fashion product for all seasons and occasions. Not only
do we reach for merit in terms of our production and design, we play every part the
environmentally attentive citizen. Our latest endeavor is to move to a power breed
model which uses agricultural waste to produce steam and power used in our
processing factories.
Being a manager, I have to explain the overall purpose of my boutique including the
virtue’s that distinguish it from the other chain of boutiques. I strongly believe that a
firm must have a mission statement which truly reveals the purpose of the firm.
Effective mission statements lead to effective efforts. In this generation, a good and
effective mission statement is precise in identifying its customers who are served and
what products and services are produced to serve.
Page 3 of 11

4. Page 4 of 11
Introduction to: Business Environment.
Business environment consists of all those factors that have comportment on
business which businessman have to deal to achieve their goals. The term business
environment implies those external forces, factors and institutions that are free of the
solitary business organizations and their management and affect the business
enterprise.
There are two types of environments.
 Internal environment.
 External environment.
But for my boutique, internal environment is the target as it is the thing about which
most direct and quick decisions can be made. Therefore, it is also the variable over
which business has the most degree of control.
Internal Environment:-
It has direct impact on the boutique as they are controllable unlike the external
environment due to the reason that the company has taken control over internal
factors. It can modify its personnel faculties or alter the marketing, to suit the
environment according to their requirements.
It has 5 factors:-
 Customers
 Shareholders
 Competitors
 Employees
 Financial institutions

5.  Customers- They are the major duty or load of boutique to create and
sustain customers. A business exists only because of its valuable customers as they seek
out the best product for the lowest expensive fare. They seek to stay with the company
with the reputable product. Workers influence the growth of the company by their
reputation to produce quality and trustworthy work. Their earnings also, affect the growth
rate of the company. Training and developmental programs help to buildup the
environmental factors of a company by ensuring the company that they will have quality
trained workers to attempt, thus producing fine quality products. Appraisals sponsor a
healthy and educated worker. Operations and maintenance of equipment in a workplace is
important to foster good and working equipment and quality products which promotes
optimal functioning organizations as a whole.
 Shareholders- They are the people who resident a publicly recorded, large
scale management. They hope that the management assists in maximizing their wealth by
the dividends as per the boutiques profits or by the capital which is an increase in the
value of shares due to good and strong performance of the boutique. The shareholders can
influence the policy and procedure of the boutique. This is done by operating voting
rights. A company can only set the wages of its shares during the initial public offering
and after that it is up to free market forces to find the wages. On the contrary, being a
manager, the business will have a very strong input into the dividend which will be paid to
the share holders.
 Competitors- Characterizing competitors too narrowly heads to the
incidental that an unidentified competitor will hook the market share without the
company's knowledge. In pursuit of growth and vitality, organizations must compete with
one another. Competition focuses on the desires and wants of entity being satisfied, not
the product being produced. Companies and marketers must keep this in mind when
assessing the competition. Barrier to entry shows business practices or conditions that
make it rigid for the existing firms or the brand new ones to enter the merchandise. A
company in a dominant market location can create barriers to entry for potential entrants.
Nevertheless, a competition indeed brings out the best in an institution and stands in need
to the management to constantly strive for excellence
Page 5 of 11

6. Page 6 of 11
.
 Employees- This is also known as Human Resource. For any organization,
employees or human resources are the essential element as it contributes to the weakness
and strength. The employees in a management must have good skills, quality, high moral,
attitude, great personality, commitment towards the work with originality, good
temperament to handle situations and a sweet nature, etc. There are many other particular
types of employees who work with a discrete set of skills, and they will also get hold of
assumptions about what the organization should do for them, and the manner in which the
organization should “behave”. This can create convincing pressure, and will ultimately
help to shape the direction that the organization must take. The involvement and
enthusiasm of the people in an organization at different zones may vary from organization
to organization. The organizational culture and overall environment have bearing on them.
 Financial Institutions- It is an installation that conducts financial
activities such as investments, loans and deposits. Almost every individual deals with
financial institutions on a daily basis. Everything from depositing money to taking out
loans and exchanging currencies must be done through financial institutions. There are
major categories of financial institutions like
 -Commercial Banks
 Investment Banks
 Insurance Companies
 Brokerages, Investment Companies
 Unit Investment Trusts (UITs)
 Face Amount Certificates
 Management Investment Companies
 Closed-End Investment Companies
 Open-End Investment Companies

7. Page 7 of 11
Factors that affect the management process:-
Planning
Organising
Leading
Controlling
Communication
Planning- It is a basic component of managers job functions and determines the
organizations goals and objectives and making the provisions for their achievement.
It is the process of determining in advance what should be cultivated, when, by
whom, how, and at what cost. However, Planning enables managers to adjust the
environment in which their companies achieve instead of only reacting to changes. It
involves choosing a course of action from handy alternatives.
Generally there are four major types of planning exercises:
 Strategic
 Tactical
 Contingency
 Managerial.
Organizing- is the process of building formal relationships among people and
resources in order to reach the target.
The process is based on five organizing principles:
 Unity of command
 Span of control
 Delegation of authority
 Homogeneous assignment
 Flexibility.
The organizing process involves five steps:
 Determining the tasks to be accomplished.
 Subdividing major tasks into individual activities.
 Assigning specific activities to individuals.
 Providing necessary resources.
 Designing the organizational relationships needed.

8. In any organizing effort, managers must choose an appropriate structure. There
are several aspects to organizing -
Page 8 of 11
 Time Management
 Structures: Centralized versus Decentralized, Line versus Staff
 Chain of Command
 Role specification.
Staffing- It is an aspect of managing an adult who is to find the right people for
the right job. Much of one's success as a manager is related to appropriate human
resource planning,
The staffing function consists of several elements:
 Human resource planning.
 Recruitment.
 Staff Selection
Communication- There is no global agreement as to what communication is,
what its aspects are and its purpose.
There are 10 major barriers to effective communication:-
 Believability: Ability of making the receiver to be cognitive.
 Attitude: Observed habit to feel one way or another about
something.
 Emotion: Strong feeling of any kind.
 Language: Method of communication by means of a system of
sounds and sound symbols.
 Nonverbal cues: Expressions by means of nonverbal
communication skills.
 Noise: Any unpleasing disturbance in the transmittance of the
message either internally or externally.
 Filtering: Careful manipulation of information to make it appear
more favorable to the receiver.
 Word interpretation: Meaning of words by the receiver.
 Perception: Reception of messages particularly.

9. Leadership- It is a managerial task; it is the process of influencing a group
toward the achievement of goals. Leadership is the effort to influence others to
maintain enthusiasm to contribute voluntarily to the achievement of group tasks in a
present or given case.
Page 9 of 11
The leadership function consists of 3 basic factors:-
 Trait Approach
 Behavioral Approach
 Situational Approach
Leadership has 3 types:-
 Autocratic
 Laissez Faire
 Democratic
Leadership is affected by 6factors:-
 Ability, power and judgments of the subordinates
 Expectations from the companions or colleagues
 Nature of the task
 Expectations of the paramount
 Manager’s personality, background, training, education. etc
 Climate and culture of organization.
Conclusion:-
To conclude, effective and efficient communication skills are often needed in the
working area of building surveyors. We cannot use technical terms in dealing with
workers as misunderstanding may result. In addition, different communication
channels are used if different purposes have to be achieved For instance, if errors are
found when a building is being checked, oral communication with workers is used.
After the building has been checked, letters or reports are used to state the errors to
the contractors. When the report is presented to the clients, pictures or even maps
may be used for easy understanding. So, different communication skills should be
used for different targets and different purposes in order to achieve effective and
efficient communication.

10. Planning is designing the future, anticipating problems, and imagining success. In
short, planning is essential for anyone who wants to survive. Organizations
constantly encounter forces driving them to change. Because change means doing
something new, the natural reaction is to resist it. They must improve their personal,
team, and cultural management skills if they hope to adapt themselves to a changing
world. Overwhelmingly, the basic idea is that since people closest to the work are
likely to know the most about solving problems in their areas, they should be
involved in the decisions concerning those areas. An added benefit is that they are
more motivated if they have some control over their work and over their own
destinies.
Management can be defined as the rational assessment of a situation and the
systematic selection of goals and purposes; the systematic development of strategies
to achieve these goals; the marshalling of the required resources, the rational design,
organization, direction, and control of the activities required to attain the selected
procedures .To carry out their responsibilities, managers need to obtain recent,
relevant information that exists in books, journals, and people's heads who are
widely scattered within and outside the organization. They have to make decisions
based on information that is both overwhelming and incomplete. In addition,
managers need to get cooperation from subordinates, superiors, and people over
whom they may have no formal authority. Factors that affect managers include level
of management, size of the organizational unit, and function of the unit, lateral
interdependence, and stage in the organizational life cycle. Despite all these demands
and constraints, managers do have some alternatives. They have a choice in what
aspects of the job to emphasize and how to allocate their time. . The functions of
organizing, leading, staffing, and communicating are means of carrying out the
decisions of planning. Everyone is a planner.
Page 10 of 11
Generally managers are engaged in four types of activities:
 Building and maintaining relationships
 Getting and giving information
 Influencing people
 Decision making.

11. Page 11 of 11
Reference:-
1.http://www.slideshare.net/daniyalt/business-environment-26301669
2.http://www.slideshare.net/aasthasahi/internal-and-external-business-environment
3.http://www.cliffsnotes.com/more-subjects/principles-of-management/
managerial-environments/the- internal-environment
4.http://www.slideshare.net/vaibhavidalvi3/what-is-business-environment
5.http://www.slideshare.net/ppanth/unit-11-business-env GG
6.http://www.slideshare.net/ppanth/unit-11-business-env
7.http://www.justanswer.com/homework/1dlve-four-external-environmental-factors-
six-internal-environmental.html
8.https://www.boundless.com/marketing/the-marketing-environment/internal-factors/
competition--2/
9.http://www.investopedia.com/walkthrough/corporate-finance/1/financial-institutions.
aspx