Internal and external influences on business opportunities
Business by the definition is any activity that is involved in commercial, industrial, and any professional activity. Business is defined as an organization that is engaged in different activities like commercial, industrial, or professional activities. Depending upon the business and the way of doing business it can be segregated into two bases, profit, and non-profit organization. People or the organization's efforts to sell the products they are manufacturing are also included in the business. To initiate a business an idea is required and as well as the name of the organization which is registered as per the criteria of the government. The next thing which is involved in enhancing the business is communication. It is a process of exchanging information among the individuals belonging to the organization and to those who do not belong to it. Effective communication plays a very important role in giving you recognition and growth in your career. You can deliver effective communication through proper channeling of information in an effective manner and by minimizing errors. Business communication majorly takes place in two ways, verbal and written. The mode of communication does not play a major role in growth and success rather the way and type of content you are communicating and providing in the communication plays a very big role in the business success and growth. Written communication is effective for record-keeping and proof. While verbal communication is better for improvising and creating a good impression of the company in and out of the organization. Developing reading skills combines various other skills which contribute to personality development and growth of the career. Effective reading skills help in a better understanding of words and a quick understanding of any content. When you read effectively you communicate it to the next party effectively which gives a good impression on you by the other party.
For running any business there are majorly four influences, the first one is the human resource, which denotes the person who is involved in the business, the second one is the information resources, the third important factor is the physical resources and the last one is the financial resource. These resources form the INTERNAL FACTORS that affect the business.
Human Resource
The first factor which is human resource is that this field has emerged as an important field for business organizations over the past twenty years. Human resource, in past, has the role of payroll which means assigning salary according to the role and capital of the company. Other functions for Human resources include giving birthday gifts to the staff. Also, to arrange the parties for the staff members. Thus, it can be conferred that the human resource role in the past was more administrative rather than strategic. Though the roles and functions of human resource management have changed and modified over time.
Information Resources
The second factor is the information resources means of collecting all the possible information through any means regarding the business. The information resources involve all the software, basic and advanced information that a person needs to run the business smoothly.
The Physical Resources
The physical resources involve all the factors the location of the company or business, the product information. And the last one which is the financial resources involves all the activities related to the finance of the business.
Financial Resources
All the business profit and loss-taking statements are recorded under finance. The input from the side of a business owner and the output he is receiving is the finance. Finance relates to banking, debit, credit, investments. It is the management of money. It also focuses on the oversight, creation, and liabilities that make up the system of finance. The concepts of finance come from macro and microeconomics.
- Personal finance: Analyzing the current financial position of an individual to form the strategies that can help an individual in the future. This is confined to a person, hence the strategies are made following the financial status of an individual. The savings for retirement, goals, yearnings, desires, requirements, etc are included in the strategies.
- Corporate finance: The finance that is needed to run a business is included in corporate finance. A large company that requires finance to raise the stocks, is one such example where finance management can be used as a piece of powerful advice in the corporate business.
- Public finance: This is also called government finance. This includes tax, budgets, debt issuance policies, etc. Government has a separate department for managing the finance of the country. The management of the funding by taxes and other forms. The process of the distribution of income and economic stability are part of finance.
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Location
Location plays a crucial role in developing the business. The business owner must take care of the production location. The location must be near all the basic facilities and there should be good transportation. The business must be in a location with good facilities and a reputed area, and it must be hygienic. A business located in a poor suburb would lead to less selling. Before purchasing the land for production or even retailing, one must take out time to search for the place.
Besides all these, certain EXTERNAL FACTORS affect the business.
Technological influences: The development in technology affected business in many ways. It is therefore advised that the business should be updated with all the technological advancement. It not only gives profit to the company but also to the customers.
Competitive Influences: Rising competition is one of the major factors of the business. Competitors are providing the same services at cheap rates can grab more customers easily. The company should see the rising competition and strategies should be such that it gains the trust of customers.
Economic Influences: Economic position of an individual to form the strategies that can help an individual in the future. This is confined to a person, hence the strategies are made following the financial status of an individual. The savings for retirement, goals, yearnings, desires, requirements, etc are included in the strategies.
Legal Influences: There are certain rules made by the government to run a particular business. Hence it is always advisable to follow all the procedures so that there will not be any violation of the rules in the future. The business should be managed and done with all the rules and regulations for its successful working.
Conclusion: All these are the factors that influence the business externally and internally. Business must be done following all these factors. People or the organization's efforts to sell the products they are manufacturing are also included in the business. To initiate a business an idea is required and as well as the name of the organization which is registered as per the criteria of the government. The next thing which is involved in enhancing the business is communication. It is a process of exchanging information among the individuals belonging to the organization and to those who do not belong to it. These factors play a vital role in the running of the business.
