Does internal environment factors that are uncontrollable by organization influence the business policies?

Answer 1

yes. the uncontrollable factors in the firm's internal environment are its mission, objectives and resources.

The mission that an organisation adopts is a brief statement encapsulating a response to the question, 'What business are we in?' The statement usually identifies the primary tangible product/service area and market(s) of the organisation, and gives some indication of how the business will be conducted.

Failure to construct a mission statement accurately results in corporate demise. Railroads, typewriter manufacturers and horse-buggy whip makers have grown obsolete because they did not define themselves broadly enough as being in the transportation, wordprocessing and leather goods industries respectively. Levitt, a Harvard professor, coined the term marketing myopiato describe this tendency of organisations defining the 'business of their business' too narrowly and thus missing out on new developments in their environment.

The resources of an organisation are also uncontrollable factors for any particular functional area. We can think of resources in terms of the other functional areas, for example, finance, operations and human resources. An example of an uncontrollable factor is how the quality of service experienced by a customer is partly dependent on decisions made outside the control of marketing. That is, the quality of service delivered by the service provider is dependent upon how well the service provider has been trained. As it is usually the responsibility of the human resource department to provide this training, which may not be familiar with the marketing orientation, the marketing department is faced with an uncontrollable factor.