Question

Explain any three internal factors of the micro environment of a business organization.

Explain any five internal factors of micro environment that influence a Business Organisation.

Answer 1

1. Internal micro-environment factors are:
   The general vision of the company: This is developed by the management and leads the company ‘s activities to operations focused on production, technology, sales or market. It’s very important that the focus is on marketing, trying to appease both the company’s and the market’s objectives.
2. Corporate Culture: The word 'business culture' relates to a company's ideas and behaviours, especially how employees and managers interact. Creating a healthy business culture is a key goal for many organisations regardless of their size, as doing this typically helps them make their staff happier and enhance employee retention.
3. Vision, Mission and Objectives: The company's vision outlines its future position, mission specifies its business and purpose, and objectives indicate its ultimate goal and strategies for achieving it.
4. Organisational Structure: A company's organisational structure defines the rules for reporting processes. As part of this critical internal aspect, organisations establish their employees' roles and duties. Companies can use numerous organisational systems, such as hierarchical or matrix.
5. Company Image and Brand Equity: Good company image and brand. Equity allows a corporation to raise funds, develop alliances, introduce new goods, and penetrate overseas markets.