Q.What is internal environment?

Internal environment = the controllable factors within the organisation itself, mainly the 5 Ms plus structure and culture.

Every business operates within an environment made up of internal and external forces. The internal environment refers to those factors that exist inside the organisation and are, by and large, under the direct control of management. Because they are controllable, a firm can strengthen or modify them to improve performance.

The key internal factors (the 5 Ms) are:

• Men – the human resources: employees, their skills, attitude and morale.
• Money – financial resources and the firm's ability to raise and use funds.
• Machinery – plant, equipment and technology available.
• Materials – raw materials and physical resources.
• Management – the managerial capability, organisational structure, culture and value system. …