Internal Environment

Survival of a business depends upon its internals strengths and adaptability to the environment. The internal strengths represent its internal environment. It consists of financial, physical, human and technological resources. Financial resources represent financial strength of the company. Funds are allocated over business activates that maximize output at minimum cost, that is , optimum allocation of financial resources.

Physical resources represent the physical assets such as plant, machinery, building etc. that convert inputs into outputs. Human resources represent the organs ion’s manpower with specialized knowledge that carries the business activities, the organization’s operative and managerial decisions are taken by the human resource. Technological resources represent the technical know-how used to manufacture goods and services.

The organization’s internal environment consists of controllable factors that can be modified according to needs of the external environment.

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