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
| Group | Who they are | Their Objectives |
|---|---|---|
| Workers | These are the people employed by the business who invest their time and effort to make the business successful | Job security,adequate pay and a satisfying job |
| Owners/Investors | These are people who have invested their money (capital) into the business | Profit, growth and survival of the business |
| Government | In charge of managing the legal and macroeconomic environment in which the business operates | Successful economy, full employment, low inflation, stable product prices and tax revenue |
| Managers | Special employees of the business who manage and control the business on behalf of the owners | Status and growth of the business, job security, high salaries |
| Consumers/Customers | People who buy and use the products of the business | High quality products at reasonable prices |
| The community | All the other people who are affected by the operations of the business. Usually refers to people who live within its vicinity/same town etc | More 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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