Describe in detail the internal factors that affect the business decisions a company makes.

What will be an ideal response?

Internal factors include the strategic plan, top managers, user requests, information technology department, existing systems and data, and company finances.?Strategic plan:A company's strategic plan sets the overall direction for a firm and has an important impact on IT projects. Company goals and objectives that need IT support will generate systems requests and influence IT priorities. A strategic plan that stresses technology tends to create a favorable climate for IT projects that extends throughout the organization.?Top managers:Because significant resources are required, top management usually initiates large-scale systems projects. Those decisions often result from strategic business goals that require new IT systems, more information for decision making, or better support for mission-critical information systems.?User requests:As users rely more heavily on information systems to perform their jobs, they are likely to request even more IT services and support. For example, sales reps might request improvements to a company's website, a more powerful sales analysis report, a network to link all sales locations, or an online system that allows customers to obtain the status of their orders instantly. Or, users might not be satisfied with the current system because it is difficult to learn or lacks flexibility. They might want information systems support for business requirements that did not even exist when the system was developed.?Information technology department:Systems project requests come from the IT department. IT staff members often make recommendations based on their knowledge of business operations and technology trends. IT proposals might be strictly technical matters, such as replacement of certain network components, or suggestions might be more business oriented, such as proposing a new reporting or data collection system.?Existing systems and data:Errors or problems in existing systems can trigger requests for systems projects. When dealing with older systems, analysts sometimes spend too much time reacting to day-to-day problems without looking at underlying causes. This approach can turn an information system into a patchwork of corrections and changes that cannot support the company's overall business needs. This problem typically occurs with legacy systems, which are older systems that are less technologically advanced. When migrating to a new system, IT planners must plan the conversion of existing data.?Company finances:A company's financial status can affect systems projects. If the company is going through a difficult time, the project may be postponed until there is more cash available to finance the effort. On the other hand, if the company is enjoying financial success, the decision to embark on a new project may be easier to make.?