Internal Environment Value System: The Value system of the foundersand those at the helm of affairshas important bearing

on thechoice of business, the missionand objectives of theorganization, business policiesand practices. Mission , Vision and Objectives Vision means the ability to think aboutthe future with imagination andwisdom. Vision is an important factorsin achieving the objectives of theorganization. The mission is themedium through which the objectivesare achieved Management Structure and nature The structure of the organizationalso influence the businessdecisions. The organizationalstructure like the composition of board of directors, Influences thedecisions of Business as they areinternal factors. Internal Power Relationship The relationship among the threelevels of the organization alsoinfluences on the business. Themutual co-ordination among thosethree is a an important need for abusiness.

 Human Resources: The human resource is theimportant factor for anyorganization as it contributesto the strength and weaknessof any organization. Thehuman resources in anyorganization must havecharacteristics like

 .1-Skills2-Quality3-High moral4-Commitment towardsthe work 5- Attitude etc . Company image and Brand Equity The image of the company in theoutside market has the impact onthe internal environment of thecompany. Its helps the1- Raising the finance2-Making Joint ventures3- Other alliances4-Expansion and Acquisitions5-Entering sale and purchase6-Launching new products7- Brand equity also help inthe company

Miscellaneous Physical assets and facilities : facilities like production capacity,technology ar5e among the factorswhich influence thecompetitiveness of the

firm. Theproper working of the assets isindeed for free flow of theworking of the company. Research and Development: thoughR &D department is basicallydone external environment but ithas a direct impact on theorganization. This aspect mainlydetermine the companys abilityto innovate and compete Marketing Resources: Resources like the organizationfor marketing, quality of themarketing men, brand equity anddistribution network have directbearing on marketing efficiencyof the company. Financial Factors: Factors like financial policies:financial positions and capitalstructure are also importantinternal environment affectingbusiness performance strategiesand decisions

External Environment : Its refers to the environment that has an indirect influence on the business. Thefactors are uncontrollable by the business. There are two types of externalenvironment

Micro-Environment The micro environment is alsoknown as the task environmentand operating environmentbecause the micro- environmentforces have a direct bearing on theoperations of the firma . S u p p l i e r s b . C u s t o m e r c .Marketing Intermediariesd . F i n a n c i e r s e . P u b l i c Macro-Environment a.Economic Environmentb.Social Environment c.Political Environmentd.Legal Env ironmente.Technical Environment