BUSINESS ENVIRONMENT

Internal And External Business Environment Of Company

Internal And External Business Environment Of Company

Introduction

Every company operates in particular business environment. The environment of the companies depends upon the internal and external environment of the businesses. The companies have to operate looking in view of its internal and external environments. The internal and external, both the environments have great impact upon the success and growth of the company. The business companies have an important relationship with the environment in which the business company operates it business. According to Hellman et al (999), the business company has significant positive or negative impact upon its performances based on its internal and external environmental factors. The interaction of internal and external environment of the company with that of the company has the common goal to achieve the competitive advantage for the company and to generate maximum profits for the growth and development of the company. The mechanisms and the components of both of the internal and external business environments of the company create the relationship among them and thus they affect the performances and the business processes and aspects of the company. The business environment gains the affects of each other both in direct and indirect manner. The environmental factors of the company are interdependent upon each other.

The dynamic and changing environments of the companies put great impact upon the companies. Many times the changing factors bring positive changes and impacts upon the business operations of the company. The positive and dynamic changes in the business environmental factors provide the companies with the enhanced opportunities so that the companies can grow, develop and can get higher profit margins while maintaining the competitive position in the market. The internal and external environments of the company if managed in an appropriate manner can create value and wealth for the company. Besides giving opportunities and benefits to the companies, the business environment also provide some threats to the business companies. Therefore the business companies are required to manage the environmental factors by having the audits of the environments on the regular basis. The companies who concern the environmental factors as an important aspect on which the success of the company depends, greatly concerns the affect of business operations upon the people and the natural environment where the company operates. The business environmental factors of the company also greatly impact the customers. The level of customer satisfaction depends upon the benefits that they get from the products and services of the company as well as from the environment that the company leaves through its operations. Thus the environmental factors, both internal and external affect the stakeholders and other constituents of the companies.

According to Rainey, D. L. (2008), the company can manage the internal and external business factors by building and maintaining the key stakeholder relationships with that of the governmental institutions, customers and other groups that have direct and indirect impact upon the company. The author has also proposed that if the companies fail to manage their ...