Using Examples, Explain What is Meant by Internal & External

Every company’s structure varies, depending on its nature, mode of operation, process type and more. Things, conditions, events, etc within an organization, impact its operation, either positively or negatively. Driving forces are objects, situations, and events that affect an organization’s operations.

Now we briefly address two driving forces.

  • Internal forces:

Internal driving factors occur within an organization and are within its control. These internal influences might be good or bad for the company. Job dissatisfaction can lead to absenteeism, voluntary resignations, and strikes, and such incidents typically influence management policies and procedures.

Internal force drivers are many:

  • Strategy
  • Structure
  • Process-oriented
  • Morale
  • Technological Capacity


In everyday business operations, management must sometimes adopt the firm’s strategy to fulfil its goals or change its mission statement to meet external demands. Adjusting a company’s strategy may involve modifying its fundamental approach to business, such as the markets it will target, the products it will sell, how they will be sold, its overall strategic orientation, the level of global activity, and its partnerships and other joint-business arrangements. Example: A corporation sets a high standard compared to its resources, and hence it must lower it since it lacks the means to reach its goal. Changing tactics may cost them.


External factors force organizations to change their structures. Structures include authority, goals, design, administrative processes, and management systems. Almost all management changes are structural. A structural change might be as fundamental as a no-smoking policy or as complex as reorganizing the organization to serve customers better. For example, if a corporation sells a product but doesn’t satisfy customers, it must modify its customer service and product structure.


Organizations may need to reengineer procedures for optimal throughput and production. Process-oriented transformation frequently involves an organization’s production process, product assembly, or service delivery. The process-oriented change includes robotics in a manufacturing facility or laser-scanning checkout systems in supermarkets. Steel company employees can’t produce more since they labour till noon. So, the company should divide 8 o’clock into three shifts. Therefore, motivate staff.

  • External Driving Force:

Changes in employee morale affect their attitudes, behaviours, abilities, or performance. Changing people-centred processes requires communication, motivation, leadership, and group interaction. Changes include:

  • Investing in training
  • Socializing employees
  • Modifying conventions to inspire a diverse staff
  • Monitoring promotion and incentive systems

This may involve altering how issues are solved, how individuals develop new skills, and how they see themselves, their employment, and the business.

Changes in Technology:

Technological transformation requires firms to manage innovation. Technical capabilities produce new items and modify current ones. Improving products and services’ dependability and quality is critical. New technologies may require reorganizing organizations. For example, the firm needs ten packers. The corporation may minimize product packaging costs by using innovative technology that only requires 2 or 3 workers to operate the machines and pack the products.

External driving factors are objects, circumstances, events, etc., that occur outside an organization and are not under its control. Below are external driving forces.

Changes in technology, politics, customer demand, and competition

Now we briefly explore the aforesaid external driving forces

Different organizations use different technologies based on their goals. Each day brings new, more powerful technologies. If one rival follows the latest technology, the others must too. If they don’t, their profitability ratio drops, consumers, leave, and businesses attract competition. In the past, we wrote letters. We wrote a letter and mailed it; the recipient got it two or three days later. Later, we communicated via phone. Then came the cell phone, and we spoke over it. Nokia’s latest phone has a camera and video recorder. So, Nokia’s competitors use cameras and video recorders on mobiles. If not, people will only buy Nokia phones. All mobile phone companies follow this technology and compete.

Political Factors:

Different countries have different organizational norms and regulations. Every corporation observes the government’s laws and regulations, such as income tax, baggage duty, customs duty, and environmental control. If the government changes, so make its regulations. The organization is harmed. The government authorizes just 10% pollution by the firm, and the corporation follows guidelines. Rules and regulations change after a government transition, and companies can pollute only 8%. The new government’s rules must be followed.

Customer Requirement:

Each firm seeks to attract clients by satisfying their needs and providing superior services. If the firm can’t attract customers, its earnings will suffer. So a company’s profit is founded on consumers’ interests and tests. Customers’ interests and needs must be prioritized. Companies adjust products, services, quality, and prices by client request. People employ fashion in their lifestyles today, and people initially notice a product’s style. One firm makes no-lace shoes. Customers want lace shoes, nevertheless. So companies must make laced shoes to compete.


Any new rival entering the market must confront several others. If one firm lowers its pricing in a competitive market, its competitors must do the same. If they don’t price competitively, customers go elsewhere. All companies aim to attract customers in a competitive climate. Buy one get one free; additional gifts, lucky draws, etc., can be used to entice clients. Volks Wagon makes the 3- to 4-lakh-dollar POLO vehicle. That’s another competition for Maruti Suzuki, a middle-class carmaker.

  • External driving forces transform the company altogether. In a competitive world, the organization must adapt.
  • Organizational transformation is a planned, continuing process including internal and external factors.


Every company must handle change. Organizational transformation requires strategy and effort. If it doesn’t change, the competition may overtake it. So Corus Strip Products UK switches to berries. They won staff support and devised a transition strategy. CSP UK is surviving in the market and making money throughout the recession because of its change programme. Government supports Corus because it respects all norms and regulations. CSP UK removes these obstacles. And CSP UK overcame these hurdles.

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