Explain five ways in which the internal environment may contribute to the success of a business enterprise. (10 marks)

Ways in which the internal environment may contribute to the success of a business enterprise

Ways in which the internal environment may contribute  the success of a business enterprise include:

1. A functional business structure.
   ​Formal arrangement of functions and the relationships of people that is directed towards achievement of organizational goals.
2. Employment of qualified, skilled and experienced personnel.
   When the correct labour force is acquired and correctly matched to their jobs, then performance is enhanced.
3. Proportionate allocation of financial resources.
   The business finances are allocated to activities based on percentage contribution to the organization’s success.
4. Access to relevant physical resources like buildings, machinery, furniture and other equipment to complement human effort.
5. Appropriate technology.
   Effective methods of production boosts the quantity and quality of output.
6. Positive business culture.
   Productivity is enhanced when culture matches the expectations, beliefs and values of the staff.
7. Realistic objectives.
   Setting objectives that are simple, measurable, achievable and specific.

Business Environment Form 1

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