Internal environment

• These are factors within the business that affect its ability to operate.
• They can either affect the business negatively or positively.

• Examples are;

 1)workers/employees/human resource- employees with relevant skills, knowledge and positive attitude towards work make the business successful.

 Business culture- refers to the beliefs and values upheld by the owners, managers and other employees.

Eg a business that involves its employees in decision making may perform better than one that does not.

 technology- refers to the skills and methods used in production

 -use of modern technology enhances production and attracts customers making the business successful.

4)Business structure- refers to the management of the business. A business with good management is likely to be successful.

5)Finances – refers to the funds required for the business to run. A business with enough/adequate funds is likely to do well.

Physical resources- this includes buildings, vehicles, equipment, tools and machinery. A business with adequate physical resources is likely to do well.