The document discusses the internal environment of a business organization. It states that the internal environment is composed of factors within the organization that can affect or be affected by its decisions and activities. It then lists and describes several key internal factors: - Value system/philosophy - Management structure - Human resources - Physical assets/facilities - Company image/brand value - Research and development - Intangibles - Competitive advantage It notes that internal factors are largely within the organization's control and can be analyzed using a SWOT framework to identify strengths and weaknesses.

1. TYPES OF
ENVIRONMENT-
INTERNAL TO THE
ENTERPRISE
Presented By:
NEHA KHAN
SHUBHAM BHARDWAJ

2. BUSINESS
ENVIRONMENT
• Every business functions as part of an
environment, which is known as its business
environment.
• The business environment consists of all those
components that influence the decisions, actions,
strategies and objectives of a business organization
in some way or the other.

3. TYPES OF
BUSINESS
ENVIRONMENT

5. BUSINESS ENVIRONMENT- INTERNAL TO THE ENTERPRISE
Internal environment is a component of the business
environment, which is composed of various elements
present inside the organization, that can affect or can be
affected with, the choices, activities and decisions of the
organization.
The internal environment of an organization is
formed of various elements such as the
management of the organization, employees of
the organization, philosophy of the organization,
and the goals & objectives of the organization.

6. INTERNAL
ENVIRONMENT
FACTORS

7. VALUE SYSTEM
• The value system of an organization is also known as the
philosophy of an organization.
• The value system of an organization contains work
processes, culture, norms, climate, and work processes
of an organization.
• The value system of an organization defines the way it
works or treats its employees and customers.
• The value system of an organization also determines
how the employees of the organization should perform
their duties. They should do their work by remaining
within the value system.

8. MANAGEMENT
STRUCTURE AND NATURE
• An organizational structure is a system that outlines how
certain activities are directed in order to achieve the goals
of an organization.
• These activities can include rules, roles, and
responsibilities.
• The organizational structure also determines how
information flows between levels within the company.
• Structure of an organization defines the composition of the
board of directors, management, and shareholders.

9. HUMAN RESOURCE
• Human resource is the most crucial asset to an
organization.
• Human Resource- employees with relevant
skills, knowledge and positive attitude towards work
make the business successful.
• The success of an organization depends on the human
resource of an organization.

10. PHYSICAL ASSETS AND
FACILITIES
• A physical asset is an item of economic, commercial, or
exchange value that has a material existence.
• Physical assets are also known as tangible assets.
• Finances – refers to the funds required for the business to
run. A business with enough/adequate funds is likely to do
well.
• Physical resources- includes properties, equipment,
and inventory and all other tangible assets of an
organization.
• The physical resources are significant for the success of
an organization. A company with better and more modern
physical assets has a competitive edge over its competitors.

11. COMPANY IMAGE AND
BRAND VALUE
• Corporate image means- the reputation
of an organization in the market.
• A company with a positive corporate image attracts
the right talent in the organization.
• Company's image and Brand value helps in
raising finance, making joint
ventures, alliances, expansions, acquisition, etc.

12. RESEARCH AND
DEVELOPMENT
• R&D is basically done on external environment but
it has direct impact on the organization.
• It mainly determines the company's ability to
innovate and compete.
• Business needs innovation in order to keep up with
competitors.
• A lack of innovation can pose a serious risk to a
growing business.

13. INTANGIBLES
• An intangible asset is an asset that is not physical in nature.
• Goodwill, brand recognition and intellectual property, such as
patents, trademarks, and copyrights, are all intangible assets.
• Customer-related intangibles- customer relationships and order
book.
• Marketing-related intangibles- brands and tradenames.
• Technology-related assets- such as patents and software,etc.

14. COMPETITIVE
ADVANTAGE
• Competitive advantage- the superiority that is enjoyed
by a firm over its competitors.
• It is superiority of a firm in a specific competitive area.
• A firm is said to have competitive advantage when it has
access to the superior quality of resources with some
additional benefits, such as skilled and
trained employees, latest technologies, etc.
• These can lead to achievement of competitive
advantage by the firm.

15. The greatest thing about internal
factors is that you have control
over most of them.

16. SWOT
ANALYSIS
The internal factors of a business are
often studied in a SWOT analysis.
The strengths and weaknesses of a
project or business are internal
factors.
Opportunities and threats are external
elements.

17. STRENGTHS
• Strengths are the features of your business which allow you to work
more effectively than competitors.
• Your specialist technical knowledge could be your strength.
When you try to find company’s strengths, try to answer the below
questions:
• What is it that you do well?
• What benefits do you have over your competitors?
• What makes you stand out from the competitors?

18. WEAKNESSES
• Weaknesses are the areas which have scope for improvement.
• For example: if you have a lower productivity or higher cost base than
your competitors.
Ask the following questions:
• What are you bad at?
• Is there anything you could be better at?
• What should you avoid?
• What leads to problems or complaints?

19. THANK YOU