Ways in which the internal business environment affects business operations

Explain five ways in which the internal business environment affects business operations

  • Business structure / organisation as well as defined structures set up allows duties to be allocated to the right people hence higher productivity
  • Business policies – Rules that are well defined make it easier for employees to interpret them accordingly
  • Human resources – Well trained and experienced workforce can increase productivity of business. Employees need to be paid well to prevent them from quitting for better payment
  • Financial resources – Availability of physical resources can ensure efficient operation of the business
  • Business culture – A positive relationship between the business and its employees will make them perform in their duties.
  • Good relationship with the customers increases demand for its good







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