The External and Internal Environment Assignment

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  1. Discuss the importance of environmental analysis in managing business organizations.
  2. Differentiate the external and internal environment.
  3. Give at least 3 variables in the external and internal environment.
  4. Discuss the potential effects of these variables on the business entity.
  5. In what way the stakeholders can affect the future of the business?

External and Internal Environment

Some of the internal and external environment are:- Internal environment include inside the association, which are the worker mentality, new gear, methodology, workforces. The association has the control of these matters in light of the fact that it happen inside the association unless like nature. For the nature, is obviously expressed with the saying outer itself which implies outside of the associations which impact the progressions in the association which the association does not have the control of it. Outside environment are included by thePolitical, Economy, Social, Technology, Legal and Environment. (Class Discussion)

b. Ordinary management and Strategic management

Management: "Accomplishing work through individuals." That's the exemplary business school meaning of 'administration. Vital Management: "Setting objectives and destinations for a venture (a business or organization as a rule). Strategic approach in managing an organization by taking into consideration the environmental forces: technological, commercial, economic, financial, political, regulatory, socio-cultural and physical environments, service markets.(

c. Stakeholders and customers

Stakeholders refer to individuals and groups that have interest in the organization and/or its products or services. Stakeholders may include but are not limited to – customers, suppliers, owners, shareholders, lenders, managers, employees, employee organizations, local community, competitors and regulatory bodies. They are each one of the individuals who have a stake in the association, i.e., who have a certain enthusiasm toward the presence of the association, yet the association does not EXIST for the stakeholder. It tries to fulfill the needs of stakeholders by fulfilling the needs of its customers. Stakeholders are the driven power. Not the main impetus. Customers are the reason for which the association exists and stakeholders are each one of those diversions, inward and outside, that met up with the end goal of fulfilling customer needs and in doing so expect some return for their exertion. Customers are those who pay money to get services and can demand for services.(

Give at least 3 variables in the external and internal environment.

Two variables of internal factors:

  1. Staff satisfaction, business management,
  2. research and development strengths of the business

Rules and regulation of the company:

1. The strengths of the company: workers, promotion scheme and communication skills are some of the basic strengths of the company. If the promotion plan is not good and your staff is not doing their job properly it will surely effect the internal working of the company.

2. Rules and regulation of the company: If you want to make good business rules of your organization it should also be followed and implemented for the better working of organisation as it is the only method to control the business internally. Three variables of external factors:

1. Political Factor

2. Technical Factor

3. Social factor

1) The political factor: Political factors greatly affect the business environment, when parties changes the government and then business policy are changed it greatly affects the working of the company for example pay rise etc. Everyone has to folloup new rules.

2) Technological Factor: In these technological factor days is the main factor of any business organization if you are other competitors are using new technical equipment, challenging production as compare to your business will increase, so will affect your organization downside.

3) Social factor: social factors also affect the external factor, because you always change the structure of society such as women working, families. How customers, communities behave and their beliefs.

( Google images)

a. In what way the stakeholders can affect the future of the business?

A stakeholder is anyone who can affect or is affected by the actions of a corporation (organization, company or business). It is enterprise are the people and electorates that help, either intentionally or automatically, to its riches making limit and exercises, and that are along these lines its potential beneficiaries and/or hazard bearers."

b. Discuss the importance of environmental analysis in decision making.

Choice making in ecological tasks could be unpredictable and apparently unmanageable, mainly due to the innate exchange offs between socio political, natural, biological, and financial variables. The determination of fitting healing and decrease methodologies for defiled destinations, area use arranging, and administrative methods frequently includes different extra criteria, for example, the conveyance of expenses and profits, ecological effects for diverse populaces, security, biological danger, or human qualities. Some of these criteria can't be effortlessly dense into a fiscal quality, somewhat in light of the fact that ecological concerns regularly include moral and good standards that may not be identified with any monetary utilize or worth


Using the diagram as shown in the next page, discuss the importance of environmental analysis and its impact to the business entity by answering questions A, B and C.

a. How will the competitors, suppliers and customers affect the business?

If we have more competitors in a business, the business activity would be increased. This is because with more competitors, the consumers would have more choice. Besides, increased competition would also result in competitive cost which would further attract the consumers. Suppliers can affect your availability of product based on their inventory or delivery time. Suppliers can affect your costs based on their prices changing, their credit terms, etc. Client administration or client consideration portrays connections between a business and a client intended to expand the client's fulfillment with the items, administrations and general mission of the business. Basically, any correspondence between a potential, present or past client and a business, for example, discussions in a physical store, via telephone or on email, may be viewed as a piece of client administration. Poor client administration can have a few inconvenient consequences for a business.

b. Analyze the influence of the following macro-environmental forces to the proposed business Legal/Regulatory

Rules and regulations in business creates, limits, or constraints a right, creates or limits a duty, or allocates a responsibility. Regulation can take many forms: legal restrictions promulgated by a government authority, contractual obligations that bind many parties (for example, "insurance regulations" that arise out of contracts between insurers and their insured)


Social Accomplishing work through individuals." That's the fantastic business school meaning of 'administration. Key Management: "Setting objectives and goals for a venture (a business or organization by and large variables can influence a business as tastes and preferences can change. For instance, if a business that offers a ton of garbage and undesirable sustenance, and the country is getting to be more wellbeing cognizant then the business will create lesl revenue A real socio-social component impacting organizations and business choices is changing buyer inclination. What was prevalent and chic 20 years prior may not be well known today or 10 years not far off. Distinctive styles and necessities can undermine long effective items and administrations. For instance, a garments organization should continually be mindful of changing inclination when making new items or it will rapidly get to be antiquated.


Technical analysis is a security analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume.


Economic Analysis for Business is to help you understand the structure of the economy, how an economy operates, why economic problems occur and the reasons why policy makers make the decisions they do.

c. Who are the stakeholders of the business?

A corporate stakeholder is that which can affect or be affected by the actions of the business .It defines stakeholders as "those groups without whose support the organization would cease to exist. Stakeholders refer to individuals and groups that have interest in the organization and/or its products or services. Stakeholders may include but are not limited toend ash customers, suppliers, owners, shareholders, lenders, managers, employees, employee organizations, local community, competitors, and regulatory bodies. For Mr. webby

  1. He needs to target the right customers and must work on there feedback.
  2. Must look food quality.
  3. He must be familiar with current people demand.
  4. He has to look for more suppliers and for them he should do some promotions.
  5. He should put lower price for his products.
  6. Get more promotions for customers.
  7. Update everyday’s deals and prices.

TASK 3 Miss Parker is the longtime general manager of MAC, the biggest food chain in Dunedin. The owner of MAC plans to open a new branch in Auckland City. Since the general manager knows that you have a Diploma in Business from IANZ, she seeks your advice how to do the following steps in strategic management:

a. Statement of the Business Mission

Having a specific mission statement gives identity to an organization, as well as a guideline for future decisionsand particular actions. It provides "the framework or context within which the company's strategies are formulated." It's like a goal for what the company wants to do for the world. Mission statement that can be used by Miss Parker. We are committed to the highest standards of food quality and customer service. MAC is the best food chain in Dunedin and now in Auckland.

b. Environmental Analysis

Considering that the organization does not operate in isolation, the planning group should analyze the environment within which the organization operates. This assessment should include legal and political considerations, social and cultural trends, economic circumstances, technological development, and, where appropriate, the organization competitive position.

c. Identification of Strengths and Weaknesses

This includes the weighing of the organizations capabilities and limitations. This form of analysis must be inclusive in a sense that it has to take into account the financial resources, human resources, the operation of both technical and organizational systems, and quality of work. Analysis of the organizations strengths and weaknesses must be guided by the mission of the organization.

d. Values of Organizational Leaders

The final step in preparing to develop strategic alternative is to take into account the values, interests, and aspirations of those who will guide the organization into the future. It must consider the people quote s response in the same environmental and organizational analysis differently.

e. Development of Alternative Strategies

At this stage, the planning group can proceed in the formulation of alternative strategies. One of the suggested methods in identifying alternative strategies is to draw quote scenarios of the future in order to anticipate and foresee possible outcomes. Future patterns will help an organization plot its direction.

  • Miss Parker must look for good location and check current market pricing.
  • She has to look for more suppliers and some better deals for them.
  • She should keep on checking market demand.
  • Should keep food as checking on which culture people living on those areas.
  • Flexible opening hours and services.
  • Keep getting various foods and changing promotions.( ”ºHome”ºBusiness Studies”ºBusiness environment)

Task 4 You are a manufacturer of beauty products in New Zealand. Your business market power is heavily dependent on the exportation of these products. If the global economy is not in a good condition and the countries where you export your products are experiencing inflation, serious poverty and unemployment, what are the possible effects of the global economy to your business in New Zealand? Make a flowchart to present the effects of the macro-environment to the business entity. Some of the possible reasons are :

  • Because of poverty it can affect sociality to not to buy products.
  • To continue keep going on my business I must look at the raw materials of my products.
  • For raw materials I do need to find another good quality of raw materials but cheaper in prices as well.
  • Keep checking on cost cuttings.
  • Put more promotions to encourage people
  • Keep checking on market demand.
  • Technologically I do need to improve more also handy for people for example, advertising, online advertising.
  • Also should make a handy website so people can look easily also a viability of buying online for time saving.
  • Seek for good sales workers(can help to improve business)
  • Try some new products as in current market demand.
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The External and Internal Environment Assignment. (2017, Jun 26). Retrieved November 28, 2023 , from

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