HBM 112 – Business Environment & Organisation

PART A – Internal Environment:

Make a list of five factors of the Internal Environment

1. Financial Resource
2. Physical Resource
3. Human Resource
4. Mission and Objective
5. Functioning of Top Management

Give the correct definition of each of factor

1. Financial Resource – the money available to a business for spending in the form of cash. These
money use for the payment of employees and other assets of the business.
2. Physical Resource – the resources that are used to operate the business or provide products
and services. These resources are manufacturing equipment, tools and facilities and etc.
3. Human Resource – is the number of people carry out business activities in an organisation.
These people are employees of an organisation or a business.
4. Mission and Objective – mission is the overall purpose or reason for its existence of a business
and objective is a gaol of the business or an organisation which needs to be meet in every
operation of the business activities.
5. Functioning of Top Management – is the function of management level from the top level
down to the lower level.

Briefly explain how these factors influence the business operations and why

1. Financial Resource – How this factor influence the business operation is that, in order for
the business to commence and operate it need finance to move forward. Financial resources
are like funding, investment from owner. If there is no financial resource like money to
operate the business won’t operate, why because this money is needed to pay the employee
wages to run the business.
2. Physical Resource – Physical resource are manufacturing equipment, tools and facilities that
human labour use in the production of goods and provide services, why because without
the equipment, tools and facilities the business cannot produce goods and provide service.
3. Human Resource – In any organisation, firm or businesses the entities cannot operate on its
own, it need employees to work, run and manage the organisation, firm or business, why
because the organisation, firm or businesses cannot stand on its own.
4. Mission and Objective – Every organisations have mission and objective. Mission is what
the business is establish do. If business establish to provide service then it will provide
service and the objective is to maximize the profit then it will do so why because the
organisation operate to maximize the profit for its service it provide.
5. Functioning of Top Management – How this factor influence the business operation is that
every decisions about the performance of business are taken by top level managers. So
whatever decisions that the top level managers make the middle level and work level will
have no say in decision making, why because they are the superiors and their decisions will
bring benefits to the business.
 PART B – External Environment:

Make a list of five factors of the External Environment.

1. Customers
2. Government
3. Creditors
4. Competitors
5. Suppliers

Give the correct definition of each factor

1. Customer- A party that receives or consumes products (goods or services) and has the
ability to choose between different products and suppliers.
2. Government- A group of people that governs a community or unit. It sets and administers
public policy and exercises executive, political and sovereign power through customs,
institutions, and laws within a state.
3. Creditor- Someone who is owed money by the business as a result of the business buying
goods or services from that person or business.
4. Competitors- Any person or entity which is a rival against another. In business, a company
in the same industry or a similar industry which offers a similar product or service.
5. Suppliers- A party that supplies goods or services. A supplier may be distinguished from a
contractor or subcontractor, who commonly adds specialized input to deliverables.

Briefly explain how these factors influence the business operations and why
1. Customers-