Learning Aim C: What to do

Enterprises: How internal and external factors can affect their success

Write a report that is split into the following two sections:

Section 1: The impact of internal and external factors

In this section, consider the impact of external and internal factors on the business success of a local enterprise. This should include the order of importance for each enterprise of the:


Internal factors within its control, e.g.:


  • Understanding the market


  • Keeping customers satisfied


  • Effective planning and financing


  • Marketing and promoting the enterprise


  • Unforeseen human resources cost

External factors outside its control, e.g.:

The impact of external factors on costs:


    • changes in the cost of energy, raw materials, borrowing, premises

The impact of external factors: marketing,selling and regulations:


    • changes in costs of marketing or selling


    • governmental changes

The impact of external factors on revenue:


    • competitors


    • consumer confidence in the economy


    • changing consumer behaviour


    • changes in consumer legislation

Section 2: Evaluating internal and external factors

Carry out situational analyses to identify how internal and external factors might affect it, and even determine its success.

You should use a:

  • SWOT analysis to look at internal and external factors

  • PEST analysis to look at external factors

Ensure you include relevant examples from the enterprise and that you arrive at a conclusion as to which are the most significant factors, and how they are currently affecting its success.