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The phrase 'internal environment' can also be used to refer to the culture within an organisation, that is, the conditions, events, and policies that influence its activities and decision making. This might be affected by personalities, leadership styles, organisational structure, rewards structure, premises and so on.
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The internal environment mainly consists of the physical, financial, technological and human resources available for use in a organization. Physical resources: These are the physical assets of an organization, for example plant, building, machinery, equipment, etc., which are used to transform inputs into outputs.
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