Title: Internal & External Factors That Affect an Organization | Your Business
Headings: Internal & External Factors That Affect an Organization
Internal & External Factors That Affect an Organization
Internal Factor: Leadership
Internal Factor: Employees
Internal Factor: Mission Statement
External Factor: Competitors
External Factor: Customers
External Factor: Economy

Content: Internal Factor: Mission Statement
Do your employees understand why your company exists? In other words, has management communicated the mission statement of your business, which is the underlying reason that you make specific products and offer specific services? Defining the ‘why’ of a company rather than the ‘what’ of a company is the key to providing your employees with the motivation and buy-in that affects how hard they work, and how much they believe in what they do. For example, the shoe company Zappos developed a mission statement that it was always about pleasing the customer, no matter what it took. That mission enabled Zappos’ management to give employees the discretion to give discounts and freebies to customers without supervisor approval. As a result, Zappos soon became known as one of the best customer service companies in the world. External Factor: Competitors
Unless you’ve invented something unique, there are other companies in your industry that sell what you sell. That means you have to be aware of your competition and what they’re doing in the marketplace, and use that information to distinguish yourself in as many ways as possible.