Internal & External Factors

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difference between internal and external factors

Internal factors that affect businesses come from within the business itself, without regard to any outside factors like customers and other businesses. External factors would be opposite.

Internal factors:
1) Employee Turnover/Employee Satisfaction
2) Management of Resources
3) Research and Development

External Factors:
1) Advertising
2) Quality of business reputation, or quality of products business produces 3) Competition by other businesses



Description of the Model

This is a graphical display of critical internal operations factors. The strongest enterprise would have all points at the outer limit of the chart.

Each factor is rated between zero and one hundred. To have a reasonable chance for successful implementation of your marketing strategy, each of the internal factors should have a rating of 70 or higher.

Characterize Your Enterprise

The expert system will position your enterprise on the chart based upon your description of: • market prominence
• distribution channels
• service history
• production experience
• complexity of technology
• economies of scale
• bargaining power of suppliers
You can trace through the supporting analysis and its conclusions, adjusting your input until you are satisfied your description accurately characterizes your enterprise.


External factors

Economic environment
This is the state of the economy in any country where the organisation operates, including; where it is based; countries into which it sells; countries from which it sources products and services. Issues such as inflation, interest rates, employment, and economic growth or decline all affect the success of an organisation. The organisation needs to be steered through the ups and downs of the economic cycle.

Technological advancements
Technological developments can give organisations a...
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