Share on Facebook Internal and external factors have a huge effect on the success or failure of a business. However, business owners and leaders do have significant influence over internal factors that affect a business, and how they handle these internal factors will have a major impact on the future of their companies. Leadership Leadership refers to the people in your organization that make all the major decisions regarding financing, budget, sales, marketing, and human resources. Companies with strong leadership have a clear vision for the future, a plan of how to achieve their goals and a quantifiable way of measuring success.
Internal factors affecting this balance involve the inventory and staffing issues behind the mechanics of operating smoothly. In addition, external market conditions such as a healthy or struggling economy can pose special questions for quick-service restaurant management.
Personnel Internal personnel factors raise a variety of challenges and issues for quick-service restaurant managers. Because quick-service restaurant workers tend to be paid lower salaries, turnover in the industry is high.
Successful managers find other ways to motivate their employees, treating them with respect, taking their needs into account when making scheduling decisions and giving them opportunities to learn new skills.
Legal Factors Legal factors can create issues that quick-service restaurant managers must address. For example, many states have passed laws requiring restaurants with a particular number of locations to list calorie counts on their menus. In response to such legislation, quick-service restaurant managers must figure out ways to post this information so it is accessible to customers.
These laws might also spur some quick-service restaurant managers to rethink menu items to make them more appealing to customers who are counting calories. As a result, managers of these operations must sometimes make decisions and follow protocols that are rooted in the well-being of the company or franchise as a whole.
Business Climate In addition to the overall economic climate, quick-service restaurants can be affected by general cultural attitudes toward quick-service food, which shift relative to variables such as healthy eating campaigns and food safety scares. For example, when Jack in the Box restaurants were implicated in an E.There are many factors that contribute to business failure and success.
Read Analyzing Internal and External Business Impacts for information about a tool that can help you assess these factors. Show References. Some organizations may perform a SLEPT (social, legal, economical, political, and technological) analysis to obtain information on major external influences on their business.
Another external. Outside influences that can impact a regardbouddhiste.coms external factors can impact the ability of a business or investment to achieve its strategic goals and objectives.
These external factors might include competition; social, legal and technological changes, and the economic and political environment. Relevant Article: Internal Factors that May Affect the Business Organization There are a number of different external variables which can affect a business.
To give a few examples, think of: how the weather might affect a food production company. INTERNAL & EXTERNAL FACTORS 3 Otherwise globalization can have a negative impact on the planning, organizing, leading, and controlling aspects of management. Technology Technology is an internal factor that causes management to evaluate the four functions of management carefully.
Internal and External Factors Affecting Human Resources by Chris Joseph - Updated June 25, Human resources departments play an important role in such areas as workforce planning, employee and labor relations, training and development, and legal compliance within their organizations.