"Explain how internal and external influences impact on a business's ability to gain a

competitive advantage"

INTERNAL FACTORS

The term internal factors refers to anything that is within the company and within its control, whether material or intangible. After these elements have been identified, they are categorized as the company's strengths and weaknesses. Strength is defined as an element that has a positive impact on the company. Types of internal environmental factors include:

• Plans & Policies
• Value Proposition
• Human Resource
• Financial and Marketing Resources
• Corporate Image and brand equity
• Plant, machinery and equipment
• Labor Management
• Inter-personal Relationship with employees
• Internal Technology Resources & Dependencies
• Organizational structure or in some cases Code of Conduct
• Quality and size of Infrastructure
• Task Executions or Operations
• Financial Forecast
• The founders relationship and their decision making power.

INTERNAL IMPACTS

HUMAN RESOURCES

Human resources can be a company's greatest treasure in the current global economy, where ideas and digital skills - rather than physical resources - are increasingly where economic value is realized. Employees can be a company's strength or weakness, depending on their degree of practical skills, attitudes toward work, performance, and other factors.

CAPITAL RESOURCES

Financial capital, in general, refers to the finances required to expand and sustain a business. CEOs use financial capital to invest in both tangible and intangible resources, such as factories, machinery, tools, and other productive equipment used to produce an output, such as marketing and employee training.

Without cash resources, no company can survive. When a company has sufficient funds, it may readily initiate projects, increase their scope, and even accomplish amazing results.

OPERATIONAL EFFICIENCY

The practice of enhancing all of business processes, which are all of your company's actions that contribute to your ultimate product or service, is referred to as operational efficiency.

Because operational efficiency has a direct impact on a company's market success, a businessman must thoroughly understand and track his company's operations to determine whether they are being carried out correctly.

ORGANIZATIONAL STRUCTURE

To have a good organizational structure, the owners must carefully evaluate how to put up a system that will allow the company to run smoothly. The most significant issue is how effective the structure is when applied to the organization, whether it is a centralized or decentralized system. The leaders of departments must ensure that information is disseminated broadly to all clients. To ensure the benefits of both employees and the business, appropriate laws and regulations are in place.

INFRASTRUCTURE

When you have well-trained and motivated employees, as well as an efficient operational and organizational system, ensure that the company's infrastructure is adequate for all of your functions. Your business is likely to function better if you have modern and high-quality facilities, reliable power, internet and wifi access, and so on.

EXTERNAL FACTORS

External factors are those that are beyond the company's control. Taking into account the external environment allows businesspeople to make appropriate changes to their marketing strategy to make it more adaptable to the external environment.

ECONOMIC SITUATION

Even though it is an external component, the economy is one of the most important determinants of a company's success. Some contributing variables inside the economy, such as interest rate fluctuations, economic crises, and so on, have a direct and strong impact on buyer consumption and, as a result, corporate profitability.

LAWS

Local government rules and regulations play an important role in the company's development. There are several countries where the laws prohibit the establishment of specific sectors. This may pose a risk to the company. Some industries, on the other hand, enjoy positive and consistent backing from local governments through their laws and regulations.

TECHNOLOGICSL FACTORS

For many years, artificial intelligence, smart internet searches, and other high-tech tasks have been at the forefront of many businesses. The tangible and intangible benefits of technology are well-known, regardless of the size of your company.
Because it can assist you in generating money and delivering results that meet the expectations of your consumers. Technology infrastructure, in particular, has an evident impact on a company's culture, efficiency, and connections. It also has an influence on the confidentiality of secret information and commercial advantages.

CUSTOMER DEMANDS

One of the most fundamental lessons we learn in economics is that meeting consumer demand is critical to a company's sustainability. It is self-evident that if your product meets the needs of clients, your business will grow regardless of whether or not you adhere to this objective. Entrepreneurs must not only recognize but also personalize their customers' interests in order to be the top company.

COMPETITION

On the plus side, competition fosters innovation, improved customer service, complacency, a thorough awareness of the core market, and a thorough understanding of your own company's strengths and weaknesses.

On the other hand, if you are not willing to change in a competitive market, your firm may suffer as a result of investors becoming scared, market expectations rising, competitive pricing, and customer disloyalty.