The internal factors of a business environment include owners, organizational structure, organizational culture, value system, mission and objectives, human resources, and labor unions. The document discusses each of these internal factors. Owners have property rights and influence company policies. Organizational structure and culture shape how a business operates. A company's value system and mission guide its decisions and behavior. Human resources and labor unions impact operations and require smooth relationships with management. These internal elements comprise the forces within a business that management must consider.

1. INTERNAL FACTORS
OF BUSINESS
ENVIRONMENT
Presented by: Pratidhee Palak Jha

2. Business Environment
 Business environment consist of all those factors that have a
bearing on the business. The term 'business environment’ implies
those external forces, factors and institutions that are beyond the
control of individual business organizations and their
management and affect the business enterprise.

3. Types of Business Environment

4. Various Factors In Internal and
External Environment

5. Internal Environment
 Forces or conditions or surroundings within the boundary of the organization
are the elements of the internal environment of the organization.

6. OWNERS
 Owners are people who invested in
the company and have property
rights and claims on the
organization.
 Owners can be an individual or
group of people who started the
company; or who bought a share of
the company in the share market.
 They have the right to change the
company’s policy at any time.

7. Organizational Structure
 The structure of the organization also influences the business decisions.
 The board of directors is the governing body of the company who are elected
by stockholders.
 Their responsibility is overseeing a firm’s top managers.

8. Organizational Culture
 Organizational culture is the collective behaviour of members of an
organization and the values, visions, beliefs, habits that they attach to their
actions.
 An organization’s culture plays a major role in shaping its .
 Acts as the foundation of the organization’s internal environment.

9. Value system
 The value system of an organisation means the ethical beliefs that guide the
organisation in achieving its mission and objective.
 It determines its behaviour towards its employees, customers and society at
large.
 The value system of the promoters of a business firm has an important
bearing on the choice of business and the adoption of business policies and
practices.

10. Mission & Objectives
 The objective of all firms is assumed to be maximization of long-run profits.
 But mission is different from this narrow objective of profit maximization.
 Mission is defined as the overall reason which guides and influences its
business decision and economic activities.

11. Quality of Human Resources
 The success of a business organisation depends on the skills, capabilities,
attitudes and commitment of its employees.
 As it is difficult for the top management to deal directly with all the
employees of the firm therefore, they are divided into different groups.

12. Labour Unions
 Labour Unions collectively bargain with top managers regarding wages,
working conditions of different categories of employees.
 Smooth working of a business organisation requires that there should be good
relations between management and labour union.

13. Thank you!
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