Title: Internal & External Environmental Factors That Affect Your Business | KyLeads
Headings: Internal & External Environmental Factors That Affect Your Business
Internal & External Environmental Factors That Affect Your Business
Table of Contents
Why understanding internal and external factors matters
What are internal environmental factors?
The 11 types of internal environmental factors are:
1. Shareholders and owners
2. Employees
3. Internal Processes
4. Directors (board of directors)
5. Equipment
6. Organization’s brand
7. Company culture
8. Company finance
9. Policies, procedures, and plans
10. Intellectual property
11. Technology developed in house
What are external environmental factors?
Micro external environmental factors
Suppliers
Competitors
Customers
Certain government policy
Available talent
Macro environmental factors
Demographic shifts
Societal changes
Government policy
Large technological shifts
Overall economic performance
Conclusion

Content: In broad terms, something that has a positive effect on the company’s brand, growth trajectory, revenue, etc. is considered a strength. If it has a negative effect on the company or doesn’t contribute to its growth then it’s considered a weakness. An example of a positive internal environmental factor would be a marketing team that has all the resources to launch, evaluate, and optimize advertising campaigns to acquire new customers. An example of a negative internal factor would be standard operating procedures that are inefficient or haven’t been updated in years. The 11 types of internal environmental factors are: 1. Shareholders and owners
One of the most impactful internal factors are the owners, shareholders, and sometimes the executive management team. This group determines who gets hired and fired, company culture, the financial position of the organization, and everything in between. It’s also difficult (and in some cases impossible) to change the owners, shareholders, or executive team.