5 Elements of Internal Business Environment of a Business

What is Internal Business Environment?

The Internal Environment refers to the forces that are close to the company and affect its ability to serve its customers. It includes the company itself, its suppliers, marketing intermediaries, customer markets and the public. Some times Internal Environment is also called Micro Environment.

The Internal Business Environments impacts on productivity of the products or goods directly. The internal business also includes all departments of the company such as management, finance, research, and developments. Each of the departments is directly impacted on marketing decision.

Elements of Internal Business Environment

Marketing Intermediaries

Marketing intermediaries are referred to the persons those resell the physical distribution firms, marketing services agencies financial intermediaries. The marketing intermediaries are those people that help the company to promote, sell and distribute its products to final buyers.


Resellers are those that hold and sell the company, product.  The resellers supply the products to the target customers.  The resellers’ transport products or goods to the big warehouses or stores. Marketing services agencies are companies that offer services such as conducting marketing research, advertising and consulting to the business.

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Customer Market

Another element of internal environments is Customers Market. The customer market is made up of individuals who buy goods or products for their household.  There are many types of customer market include customers market, business market, Govt. markets, international markets, and reseller market.


Competitors are also factors of the microenvironment. Competitors include companies that offerings similar products or services. To be stable in the market the company must innovate and provide updated products. The company should develop a strategic advantage over their competitors.


The final elements of the internal business environment is Public. Which is any group that ha san interest in or impact on the organization is the ability to meet its goals. governments publics can affect the company by passing legislation laws that put restrictions on the companies actions.