Factors Affecting the Business

Factors affecting the business

• Internal & External factors

Basically, the internal factors can be referring as factors that are within the company in which can make an impact and also can make a firm to be successful. One of the example of the internal factor are the role of the company leadership. The leadership style can make an impact to the organization itself. Usually, an organization itself have their formal structure of a mission and vision statement. Other examples of the internal factors are the financial resources, physical resources, human resources, access to natural resources and the current processes such as employee program and others.

(Contributor, 2015)

Meanwhile, for the external factors, it refers to the things that are beyond of a firm control such as government regulation, competition and many more. Eventually, every strategic planner needed to anticipate and solve the circumstances that can affect a firm. Some of the external factors can be a threat and also an opportunity to a firm. It is important to keep external factors from threatening the business itself.

(Marilyn Lindblad, 2016)

• Strategic Management Model and its application in business

Strategic management model can be referring to a pattern or mode of the strategic management itself. Mostly, with these model, it can help a firm to grow and potentially be more successful. Basically, it takes months or years in order to make a strategic planning. It also requires deep in research or development and a good project management in order to execute the planning.

Strategic management model also can be known as strategic planning model. This model basically is selected for the purpose of formulating and implementing the plan that are based on a firm itself. Many claims that no strategic planning model can be perfect or success. However, the strategic planner must formulate a strategy carefully in order to make a firm survive on a long term.

There are many steps involved in this strategic management model such as doing a mission statement, making objectives, making an analysis of the situation, formulating the strategies, making an application and also taking control. This steps or model can be applying into a functional department such as research and development, marketing, production, human resources and so on.