ZIMSEC O Level Commerce Notes: The Internal Business Environment

  • As already mentioned elsewhere businesses do not operate in a vacuum
  • The operations of a business are affected by factors internal and external to it
  • Here we will look at the internal business environment

The internal business environment

  • A business’s internal environment is made up of people known as stakeholders
  • Refers to groups of people that are affected by and in turn affect the operations of the business
  • These people are also known as stakeholders of the business
GroupWho they areTheir Objectives
WorkersThese are the people employed by the business who invest their time and effort to make the business successfulJob security,adequate pay and a satisfying job
Owners/InvestorsThese are people who have invested their money (capital) into the businessProfit, growth and survival of the business
GovernmentIn charge of managing the legal and macroeconomic environment in which the business operatesSuccessful economy, full employment, low inflation, stable product prices and tax revenue
ManagersSpecial employees of the business who manage and control the business on behalf of the ownersStatus and growth of the business, job security, high salaries
Consumers/CustomersPeople who buy and use the products of the businessHigh quality products at reasonable prices
The communityAll the other people who are affected by the operations of the business. Usually refers to people who live within its vicinity/same town etcMore jobs, environmental protection, socially responsible products and actions of the business
  • These different actors interact and act together to create the internal environment in which a business operates
  • Sometimes their aims/objectives are in conflict with one another creating conflict

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