Business Environment - FY BAF 1st Unit Commerce PDF

- ~............. , Luc t:H v uu11 alt=H l«.l l,U...,.. 1 - -- b' tives ot the rum. It should be planned to achieve the o 1ec PES OF BUSINESS 14. CLASSIFICATION / COM PONENTS / T)' ENVIRONMENT Business Environment...

- ~............. , Luc t:H v uu11 alt=H l«.l l,U...,.. 1 - -- b' tives ot the rum. It should be planned to achieve the o 1ec PES OF BUSINESS 14. CLASSIFICATION / COM PONENTS / T)' ENVIRONMENT Business Environment I 1· Internal Environment External Environment · I. Internal Environment · It refers to all the factors within an organization ~hic h af~ec t.its functioning-. These factors are generally regarded as controlla ~le 1.e. the organization can alter or modify such factors. ~ome.of the import~nt inte rnal factors are : · a) Financial Capability ,. Fina ncia l capability. factors relate to the availability, ~sag e and man agem ent of funds and all allied aspects that have a bean ng on an. orga niza tion 's capacity· and its ability to implement its strategie s. Some of.the imp orta nt factors which influence the financial capabilit y of any orga niza tion are as·follows : · ·. i) Factors related to the sources of funds like capital struc ture, proc urem ent of capital, controllership, financing pattern, · wor king capital availability, borrowings, capital and cred it availability, reserves and surplus and relationship with leaders, bank s and financial institutions. ii) _Factors related to uses of funds capital investment, fixed asse ts, acquisition,· current assets, loans and advances, dividend distribution and relatiC>nship'with shareholders. Hi) Factors· related to: management of funds like finan cial ~ccou~ting and budgeting _man~gement control systen:i, state of · financial health, cash, 1nflahon, credit, retu rn and. risk management, cost reduction and control & tax pian ning and. control its advantages. · · b) · Marketing Capability. Marketing Capability facto.rs relate to the p,ricing, p romotio. · d distr ibut ion of prqducts or services and all the allied aspe t th n an.. t' ,. h c s at ave a bearing on_ a:11 orgafn1zha 10n_~ capa