Classification of Environmental Factors
basis of the extent of intimacy with the firm, the environmental factors may be
classified into different types namely internal and external.
1 Internal Environmental Factors
internal environment is the environment that has a direct impact on the
business. The internal factors are generally controllable because the company
has control over these factors. It can alter or modify these factors. The
internal environmental factors are resources, capabilities and culture.
2 External Environment Factors
to the environment that has an indirect influence on the business. The factors
are uncontrollable by the business. The two types of external environment are
micro environment and macro environment.
& WEIHRICH, “Management is
the process of designing and maintaining of an environment in which
individuals working together in groups efficiently
accomplish selected aims”. “Management is the art of getting things through and
with people in formally organized groups”.
Ex: Human Resource Management,
management functions are planning and decision making. Organizing, leading, and
controlling are just as relevant to international managers as to domestic
managers. International managers need to have a clear view of where they want
their firm to be in the future; they have to organize to implement their plans:
they have to motivate those who work lot them; and they have to develop
appropriate control mechanisms.