Business Plan-Penny’s Blossoms
A buisness internal environment is the internal strength of a business and consists of several factors such as finances, physical and human resources, and technological resources. Penny’s business lacks adequate funds. Penny has little financial investments, and, as a result, the company produces only twenty blossoms in a day.besides, she sells the blossoms at fifty cents per piece.
Penny’s business lacks physical resources, such as plants, buildings, and machinery. Physical resources improve the efficiency of a company by converting inputs into outputs. Furthermore, there is no workforce possessing specialized knowledge that performs business activities. She works alone, and therefore the rate of production is slow.
Penny’s business lacks the technical know-how necessary in manufacturing the blossoms. All the production depends on the efficiency of her hands.
The external environment factors adjust the internal environment to the external environment. External factors that affect penny’s business include customers and the economic climate. Penny sells only twenty blossoms in a day. Moreover, she relies on her friend, who handles a different brand to market and sell the blossoms on her behalf.
The economic environment also affects penny’s business. Penny does not benefit from government regulations, which promote small enterprises from the exploitation of intermediaries. Penny has no idea if the middle man sells the blossoms at the set price. If penny adopted modern marketing techniques, she would make higher profits than she is making now.
My opinion is that penny should close down her business. First, the business lacks customers; customers are an essential external environment aspect. Unless there are customers, a business has no meaning. Besides, the company requires both human and physical resources. Lack of these two resources leads to slow and low-quality production; This means that in the case penny gets customers, her business cannot guarantee a continuous supply of blossoms.